Although most import scrap offers have remained mainly stable in Pakistan over the past week, deal prices have increased slightly as most sellers have been refusing to provide additional discounts. Meanwhile, Pakistani rebar mills have been forced to hike rebar prices in the local market once again this week. However, this has been mainly attributed to power supply tariff hikes and the continuous depreciation of the Pakistani rupee against the US dollar, and not to real demand, SteelOrbis has learned from the market on September 6.
More specifically, the deal price level for ex-UK/EU shredded scrap in containers has reached $438-440/mt CFR, up by $2-3/mt week on week. At least two deals for 1,000 mt each of ex-UK/EU shredded scrap have been confirmed by buyers at $438/mt CFR and $439/mt CFR, respectively, while, according to sources, in total around 5,000-8,000 mt of ex-UK/EU shredded scrap have been booked in Pakistan this week at $438-440/mt CFR. Besides, several deals for PNS scrap have also been heard in the market at around $455/mt CFR.
Meanwhile, most mills have focused on increases in rebar prices given the current economic situation, the unprecedented exchange rate of the Pakistani rupee against the US dollar and the increase in power tariffs. In the local Pakistani market, new offer prices for base 10-12 mm rebar of grade 60 have increased to PKR 292,000-295,000/mt ($950-959/mt) ex-works, up by as much as PKR 7,000/mt ($23/mt) week on week and up by around PKR 15,000/mt ($49/mt) over the past two weeks.
Local scrap prices equivalent to shredded have kept rising as well in Pakistan this week, reaching around PKR 200,000/mt ($650/mt) ex-warehouse, up by PKR 2,000-5,000/mt ($6.5- 16/mt) week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 307.46