Import scrap prices in Pakistan have continued to rise, as fixed in several deals, but buying is expected to improve more in the short run as customers are coming back from the national holiday, while global market conditions appear strong and sellers are optimistic in pushing up the overall price line.
According to sources, around 2,000-3,000 mt in total of ex-UK/EU shredded scrap in containers have been booked by Pakistani customers at $425/mt CFR this week, up from deals concluded at around $414-419/mt CFR a week ago. Meanwhile, new offers for ex-UK/EU containerized shredded scrap have increased to $435/mt CFR, versus $420-425/mt CFR last week, while new bids have been reported at $430/mt CFR.
In the local market, most offers for scrap equivalent to shredded have increased as well, reaching PKR 180,000-183,000/mt ($616-626/mt) ex-warehouse, though, according to some sources, it is expected the price will reach PKR 190,000 mt ($650/mt) ex-warehouse in the short term.
In the meantime, as expected, local rebar producers have kept increasing their offers given the continuous and unprecedented increase in the cost of energy and the highly volatile PKR-US dollar exchange rate. “We can no longer absorb the huge price fluctuations in the manufacturing costs,” one of the biggest Pakistani mills stated. New offer prices for base 10-12 mm rebar have been increased to PKR 270,000-272,000/mt ($924-931/mt) ex-works, up by around PKR 5,000/mt ($17/mt) week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 292.22