This week has brought another decrease in import scrap prices in Pakistan, but this has not resulted in better interest from the buyers’ side given the extremely poor finished steel demand in the county, coupled with the ongoing issue regarding letters of credit (LCs). At the same time, most Pakistani customers still believe in the probability of further declines in import scrap prices in the short run, while an improvement in prices is expected not earlier than the second half of November.
Specifically, offers for ex-UK/EU shredded scrap in containers have settled at $395-400/mt CFR, versus $405-410/mt CFR last week. At the same time, only occasional deals for small tonnages have been reported this week, while most Pakistani buyers have been staying away from new purchases.
At the same time, local prices for scrap equivalent to shredded have dropped in Pakistan as well, coming to PKR 130,000-135,000/mt ($464-482/mt) ex-warehouse, down by PKR 10,000-15,000/mt ($36-53/mt) week on week.
Meanwhile, local prices for rebar 10-12 mm of grade 60 have decreased by around PKR 10,000-15,000/mt ($36-53/mt) to PKR 240,000-245,000/mt ($856-874/mt) ex-works, while, according to sources, demand from end-users has remained weak in the country.
“The scrap market globally, including Pakistan, will improve after November 15, after the Diwali Festival when India should start to buy more and Turkey will have more appetite,” an international trader told SteelOrbis.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 280.25