Trade activity in the import scrap market in Pakistan has remained muted this week, mainly affected by liquidity issues. Meanwhile, most offers from foreign scrap suppliers have been kept relatively stable over the past week, though deal prices have rolled back to levels reported two weeks ago, according to sources.
More specifically, following at least 5,000 mt of shredded ex-UK/EU scrap booked at $425-430/mt CFR Qasim throughout last week, this week most offers for ex-EU/UK shredded scrap in containers have been voiced at $425/mt CFR, while a few deals have been concluded at $422-423/mt CFR levels though, according to sources, customers have no appetite for restocking.
“Trade has been slow due to liquidity issues, but some customers believe they may get the opportunity to restock at lower prices in the current market environment,” a market insider said.
At the same time, some positive sentiments have been mounting among market insiders since, according to local news reports, the government of Pakistan is considering relief for industries in the upcoming budget of the financial year 2024-25, which would lead to a reduction in the power supply tariffs for the country’s industrial sector, including the steel industry. As per reports, the electricity tariff may be reduced for industrial consumers, who currently pay an additional PKR 240 billion ($861.9 million) in electricity bills.
