Although Pakistan continues to face a slowdown in its construction industry, with finished steel demand lagging behind supply due to weak buyer activity and the absence of new government-backed projects to stimulate growth, routine restocking efforts have driven up import scrap prices, with suppliers pointing to shortages in their local markets.
More specifically, according to sources, following several deals for around 2,000-3,000 mt of ex-EU/UK shredded scrap in containers signed at $375/mt CFR at the end of last week and the beginning of this week, by the end of the current week at least 2,000 mt more are reported to have been booked at $385/mt CFR. Thus, despite Pakistani buyers’ attempts to push for more discounts last week, this week deal prices for ex-EU/UK shredded scrap have increased by $5-10/mt week on week, while most offers have moved sideways, standing at $385/mt CFR.
In the meantime, the local market has remained relatively stable with moderate rebar demand, with local offer prices for 10-12 mm rebar of grade 60 standing at PKR 245,000/mt ($880/mt) ex-works, up by PKR 5,000/mt ($18/mt) week on week. Besides, offers for local scrap equivalent to shredded have remained relatively unchanged PKR 146,000/mt ($524/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.51