Firm demand for finished steel has left no other option to Pakistan’s longs producers but to accept higher scrap prices. The higher prices, in turn, are mainly the result of the ongoing uptrend in the global scrap market and tight supply domestically.
Accordingly, SteelOrbis has learned of a few bookings for shredded 211 scrap of European origin in containers at $505-510/mt CFR Qasim this week, which is a minimum $25-30/mt higher compared to the previous deals concluded last week.
Following the ongoing rise in input costs and relatively solid demand, Pakistani producers have raised their rebar offers again this week, though the prices have still not kept up with import scrap prices, according to market insiders. Currently, domestic 10 mm grade 60 rebar in Pakistan is available at PKR 138,000-139,000/mt ($856-862/mt) ex-works, including 17 percent VAT, up $13-15/mt (PKR 3,000-4,500/mt) within the past week. “Rebar is still below the current booking price for shredded. With prices of shredded scrap at $510/mt CFR, rebar may be at least PKR 155,000-160,000/mt,” a key rebar producer stated. Meanwhile, facing shortages of feedstock, some local rebar mills have even been compelled temporarily to stop offering rebar.
$1 = PKR 160.040