Pakistani import scrap market has remained cautious, with buyers reluctant to accept high offer prices due to ongoing liquidity challenges, while seasonal factors, including the typical December slowdown and winter conditions are expected to keep market sentiment subdued for the time being.
Specifically, according to market insiders, while this week there have been reported a few transactions for ex-EU/UK shredded scrap at around $390-395/mt CFR, mainly the same as last week, overall trading volumes have remained low, with buyers adopting a cautious stance. “Steel mills are currently operating at around 40 percent of their production capacity, and there are no immediate indications of a market recovery in sales,” a mill’s representative said.
Most offers for ex-UK/EU shredded scrap have been voiced at $393-395/mt CFR, mainly the same as last week. Offers for ex-UAE shredded scrap have been voiced at $395-400/mt CFR, against $395-398/mt CFR last week.
However, there is some optimism on the horizon as expectations rise for lower interest rates and reduced electricity tariffs, which could help alleviate pressure on steel mills and improve margins in the short term.
In the meantime, local prices for rebar have remained unchanged since last week with offers for 10-12 mm rebar of grade 60 standing at PKR 245,000/mt ($882/mt) ex-works. However, offers for local scrap equivalent to shredded have settled at PKR 140,000-145,000/mt ($504-522/mt) ex-warehouse, compared to PKR 145,000/mt ($522/mt) ex-warehouse last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 277.96