The ongoing increase in import scrap offer prices coupled with the approach of Ramadan have caused Pakistani customers to replenish their inventories. Tight availability of scrap in the domestic market has continued to create an additional leverage on the positions of local steel mills, leaving them no other choice but to accept import prices.
Accordingly, over the past week import prices of shredded 211 scrap of European origin in containers to Pakistan have largely increased by $15/mt to $440-445/mt CFR Qasim. SteelOrbis has learned of the most recent bookings of 3,500 mt in total at the low end of the range, for April shipment. “A pre-Ramadan buying spree in Pakistan adds optimism concerning the outlook in the coming days,” a Pakistani trader commented with regard to the current situation locally. In addition, the appreciation of the Pakistani currency against the US dollar has increased buyers’ willingness to accept higher import scrap prices. Accordingly, only since the beginning of the past month the Pakistani rupee has strengthened by about three percent. “Pakistani customers are actively inquiring for scrap at the moment, but availability seems to be scarce,” another Pakistan-based trader stated. Meanwhile, HMS offers from the UAE have risen by $5-10/mt to $425-440/mt CFR Qasim, according to Pakistani sources.
The local prices of scrap equivalent to shredded in the northern region of Pakistan have increased to PKR 89,000-90,000/mt ($578-585/mt) ex-warehouse, from PKR 88,000-88,500/mt ($569-572/mt) ex-warehouse last week. In the meantime, domestic grade 60 rebar in the northern provinces has added about PKR 1,000/mt ($11/mt) in price during the past week and is now available at PKR 131,000/mt ($851/mt), ex-works. Offers of rebar of the same grade in the south have reached PKR 133,000 ($864/mt), ex-works. All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 152.9