Offers for import containerized shredded scrap to Pakistan have moved up again, following the uptrend in the global market. Meanwhile, Pakistani buyers have concerns that prices have not touched bottom, taking into account the new lockdown restrictions in the UK coming into force on Thursday, November 5. “The announced restrictions are not as stringent as they were within the first lockdown, but I am afraid scrap suppliers may delay shipments causing further supply-demand gaps and, consequently, a price increase,” a representative of a Pakistani steel mill commented. “In future, we will see only tighter availability of scrap as the UK goes into lockdown,” another producer stated, echoing the concerns.
Accordingly, within the past week offers for shredded 211 scrap of European origin in containers to Pakistan have widened to $325-330/mt CFR Qasim, while a week ago the announced prices were mostly at the lowest end of the range. However, according to market insiders, as of now deal prices hardly touch $325/mt CFR Qasim. The material which is already in containers or on its way to Pakistan is possible to purchase at $332/mt CFR Qasim, market insiders report.
Local rebar prices in Pakistan have not changed within the past week and are mostly at PKR 110,000 /mt ($688/mt) ex-works, including 17 percent VAT.
$1 = PKR 159.928