Following several weeks of a strong price downtrend, this week has shown another drop in import scrap offer prices in Pakistan, which has resulted in only occasional deals, while in general many Pakistani buyers have remained inactive due to slow end-user demand.
Specifically, import offers for ex-UK/EU shredded scrap in containers to Pakistan have fallen to $405-410/mt CFR, compared to $410-415/mt CFR last week, while most bids have been voiced at $400-405/mt CFR level. Some deals have been heard at $404/mt CFR, but most Pakistani buyers are not in a rush to sign new deals.
“The steel sector is in deep trouble due to a lack of demand and the burden of expenses,” a local trader told SteelOrbis, adding, “Most mills are closed and 20 percent are operating on 40 percent capacity.”
“The rupee’s appreciation against the US dollar has badly impacted price rates, and buyers are expecting the market to come down more,” another source said.
Meanwhile, local prices for rebar 10-12 mm of grade 60 have decreased by around PKR 8,000-10,000/mt ($29-36/mt) to PKR 250,000-260,000/mt ($905-941/mt) ex-works.
Furthermore, local scrap prices equivalent to shredded have settled at PKR 140,000-150,000/mt ($507-543/mt) ex-warehouse, down by PKR 10,000-15,000/mt ($36-54/mt) over the past week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 276.19