Pakistan’s imported scrap prices have remained firm over the past week, while trading activity has failed to recover after the Eid holiday. Market sentiment is still supported by supply-side issues affecting Middle Eastern flows, though most mills have already restocked and are currently showing a more cautious approach.
More specifically, offers for ex-EU/UK shredded scrap have been heard at $410-415/mt CFR Pakistan this week, the same range as last week. Concluded deals have been reported at $408-412/mt CFR, up from $405-408/mt CFR Qasim heard last week. In particular, ex-EU shredded scrap has been sold at $410/mt CFR after the Eid holiday, market sources told SteelOrbis. Negotiable levels are currently reported at around $408-410/mt CFR, depending on cargo size, quality and payment terms, resulting in a current workable price range of $408-415/mt CFR. However, trading is still rather slow, as many mills had already booked sufficient tonnages before the holiday. Meanwhile, a Pakistani trader told SteelOrbis that a buyer was trying to conclude a deal at significantly higher levels today, March 25, pointing to the continuing firmness of sellers’ expectations.
In the Pakistani domestic market, local scrap equivalent to shredded is reported at PKR 145,000-150,000/mt ($517-535/mt) ex-warehouse, with price indications remaining close to last week’s level of around PKR 146,000/mt ($522/mt) ex-warehouse. Meanwhile, grade 60 rebar prices are heard at PKR 245,000-250,000/mt ($874-892/mt) ex-works, compared to PKR 245,000/mt ($876/mt) heard last week. Finished steel prices have generally remained stable, though market participants said customers have been busy with bills and liabilities this week, which may keep the market quiet in the short term. Producers are cautious, although most sources do not expect any sharp downward correction. Sentiment in the commercial segment is reported to be somewhat weaker than in the formal graded scrap sector.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.26