Trade conditions in Pakistan’s import scrap market have remained mostly stable compared to last week, with a slight uptick in demand observed, while most import offers have increased slightly, returning to the levels heard two weeks ago.
More specifically, offers for ex-Europe and ex-UK shredded scrap in containers have been voiced at $400/mt CFR, against $390/mt CFR last week. At the same time, following several deals at $390-392/mt CFR last week, this week a few deals for ex-EU shredded scrap have been signed at $393-397/mt CFR.
Industry experts are optimistic following the recent policy rate cut, which is anticipated to boost economic activity, especially in the construction sector, leading to increased demand for rebar. Besides, most market insiders believe that local rebar prices are likely to rise in the short run in Pakistan as mills are looking to regain their positions and to minimize the losses incurred for months in sales margins. Specifically, offers for local rebar of grade 60 10-12 mm from mills have been voiced at around PKR 250,000/mt ($898/mt) ex-works, mainly the same as last week. Furthermore, offers for local scrap equivalent to shredded have settled at PKR 150,000/mt ($540/mt) ex-warehouse, the same as last week.
“The State Bank of Pakistan (SBP) is expected to reduce interest rates by 2-2.5 percent, which will be a positive sign and may generate further activity,” a market insider said SteelOrbis.