This week, the import scrap market in Pakistan remains stagnant, with no clear drivers for an upward shift in rebar prices, while domestic rebar trade has been sluggish, as buyers continue to maintain a wait-and-see approach. At the same time, import prices for scrap have been showing a slight downward bias for shredded scrap in containers, with local customers anticipating further discounts in the next round of purchases.
More specifically, offers for ex-EU/UK shredded scrap in containers have been voiced at $390-395/mt CFR, down by $5/mt over the past two weeks, with at least 4,000 mt in total of scrap reported to have been bought at the abovementioned levels this week. Meanwhile, according to sources, most market insiders expect new deal prices to reach $380-390/mt CFR levels in the short run.
Offers for ex-UAE shredded scrap, however, have been maintained stable at high levels of around $400-403/mt CFR, mainly the same as last week.
“Market participants are hopeful that sentiments may improve following the budget announcement expected in May or June. For now, however, both demand and trading activity remain notably weak,” a market insider told SteelOrbis.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have decreased to PKR 135,000-140,000/mt ($485-503/mt) ex-warehouse, down by PKR 5,000/mt ($18/mt) over the past two weeks. Furthermore, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000-240,000/mt ($844-862/mt) ex-works, down by PKR 5,000/mt ($18/mt) since late March.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.46