In Pakistan, demand for import scrap has been rising slightly this week, leading to expectations of increased import sales. As a result, more customers are entering the market. Meanwhile, local rebar prices have shown stability, with just a slight upward trend, though sales activity has remained moderate. According to sources, there is a positive outlook for the rest of the month, as customers are likely to gain more leverage due to reduced production levels.
Offers for import shredded scrap for ex-EU/UK origin have been voiced at $380-385/mt CFR, versus $385/mt CFR last week. Besides, according to sources, several deals for ex-UK shredded scrap have been signed at $379-380/mt CFR, down by $5-6/mt week on week, while most bids have kept falling further.
In the meantime, local prices for rebar have remained relatively unchanged since last week with offers for 10-12 mm rebar of grade 60 standing at PKR 245,000/mt ($878/mt) ex-works. Besides, offers for local scrap equivalent to shredded have settled at PKR 140,000/mt ($502/mt) ex-warehouse, the same as last week.
“The forecast for next month includes a reduction in both interest rates and electricity tariffs. These adjustments are expected to support mills in maintaining, and potentially improving, their profit margins,” a market insider told SteelOrbis.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.89