Import scrap offers to Pakistan have continued to move down over the past week, though buyers have maintained a cautious approach as regards new bookings, anticipating prices to move down further under the pressure of weak sentiments in the global steel market.
Accordingly, this week, import prices of shredded 211 scrap of European origin in containers to Pakistan have been voiced at $515-520/mt CFR, down $7-8/mt compared to the levels fixed a week ago. Sporadic deals have been fixed at the low end of the abovementioned range. By the middle of the current week, scrap suppliers of ex-UAE HMS scrap have cut their offers to $480-485/mt CFR Qasim from $490/mt and above, voiced at the beginning of the period in question. Meanwhile, HMS scrap from Brazil and Europe has been available at $475-480/mt CFR, SteelOrbis has learned.
Prices of local scrap equivalent to shredded have decreased to PKR 112,000/mt ($662/mt) ex-warehouse Lahore, down PKR 500-1,000/mt ($9-12/mt) over the past week.
The situation in the finished steel segment has deteriorated lately with rebar sales having slowed down due to weather conditions. On balance, despite official prices for 12-32 mm rebar of grade 60 in Pakistan have remained unchanged week-on-week, at PKR 175,000-177,500/mt ($1,034-1,046/mt) ex-works Lahore, the customers succeed in receiving lower prices in deals.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 169.218