Trade activity in Pakistan’s import scrap market has remained sluggish this week given persistent liquidity issues, coupled with disruptions in the domestic steel and scrap markets stemming from ongoing political unrest. Meanwhile, import prices for scrap have continued to decline this week amid the continuing negative sentiments globally and especially in Turkey’s import scrap market.
More specifically, offers for ex-UK/EU shredded scrap in contained have settled at $385-390/mt CFR, compared to $395/mt CFR last week. Besides, according to sources, several deals for around 3,000 mt in total for ex- UK/EU shredded scrap are reported to have been signed at $385-386/mt CFR during the past week, versus the deal price at $393/mt CFR last week.
Meanwhile, offers for local rebar of grade 60 10-12 mm from mills have been voiced at around PKR 245,000/mt ($881/mt) ex-works, the same as last week. Besides, offers for local scrap equivalent to shredded have remained at PKR 145,000/mt ($522/mt) ex-warehouse.
“Pakistan’s steel sector is currently grappling with a major crisis, as soaring electricity costs have forced many mills to operate at just a fraction of their capacity, with some running at around 30 percent. Besides, the situation is further compounded by the weakening rupee and high interest rates, which have led to a sharp drop in steel demand and a backlog of unsold inventory,” a market insider told SteelOrbis.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.00