This week, the import scrap market in Pakistan has continued to remain under pressure from weak finished steel demand. At the same time, import scrap prices have kept declining slightly in new deals as buyers have been seeking lower costs.
More specifically, offers for ex-Europe and ex-UK shredded scrap in containers have settled at $390/mt CFR, against $400-405/mt CFR last week. According to sources, several deals for around 3,000 mt of ex-UK shredded scrap have been signed at $390-392/mt CFR this week, down by $2/mt week on week. Besides, two or three deals more were booked for 2,000-3,000 mt in total from the UK and Europe at $385-388/mt CFR.
At the same time, local demand for finished steel and for local scrap has remained sluggish this week, though several Pakistani steel mills have adjusted their local prices for rebar raising them by around PKR 2,000-4,000/mt ($7-14/mt). Thus, offers for local rebar of grade 60 10-12 mm from mills have been voiced at above PKR 250,000/mt ($898/mt) ex-works. Furthermore, offers for local scrap equivalent to shredded have increased significantly by around PKR 10,000/mt ($36/mt) to PKR 150,000/mt ($540/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 277.71