Following declines in import scrap prices last week, this week new offers for import scrap in Pakistan have shown another drop, pushing Pakistani customers’ bids even lower. At the same time, although market activity has seen a modest increase this week as conditions begin to stabilize after the recent riots and strikes, most buyers have remained cautious in terms of new purchases given the anticipated ongoing political instability in the country, which strongly influences purchasing decisions and broader market confidence.
More specifically, offers for ex-UK/EU shredded scrap in containers have settled at $380-385/mt CFR, compared to $385-390/mt CFR last week. Besides, according to sources, several deals for ex-UK/EU shredded scrap are reported to have been signed at $375/mt CFR during the past week, versus the deal price at $385/mt CFR last week. Furthermore, new bids have been voiced at as low $371/mt CFR, according to sources.
“The riots and strikes ended last week, bringing the normal activity back, but it's expected that the law-and-order situation may remain compromised as new calls for strikes are announced,” a market insider told SteelOrbis.
Meanwhile, offers for local rebar of grade 60 10-12 mm from mills have been voiced at around PKR 245,000/mt ($880/mt) ex-works, the same as last week. Besides, offers for local scrap equivalent to shredded have remained at PKR 145,000/mt ($521/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.29