Import scrap prices in Pakistan have as expected decreased this week, mainly under pressure from the global downtrend and lower bids from local steel mills. Although most Pakistani buyers are still cautious, expecting a further downward correction, several deals have been reported at lower levels this week as scrap customers in Pakistan have started to secure inventory, considering the upcoming monsoon season.
Accordingly, after a few deals for ex-UK/EU shredded scrap were signed at $530-535/mt CFR at the end of last week, several deals (around 2,000 mt each) have been reported at $520-525/mt CFR this week. Meanwhile, offers for shredded 211 scrap of UK and European origin in containers to Pakistan have been settled at $520-525/mt CFR, compared to $550-560/mt CFR at the beginning of last week.
At the same time, another deal for HMS I/II 80:20 from South Africa has been reported at $510/mt CFR Qasim this week.
“Despite higher business activity, the Pakistani market is overwhelmed by the uncontrollable national currency depreciation and today the government announced its plan to implement a 10 percent regulatory duty on imports of steel, making the market even more confused,” a Pakistan-based trader told SteelOrbis.
Meanwhile, local prices for 10-12 mm rebar of grade 60 in Pakistan have remained mostly unchanged at around PKR 200,000/mt ($1,018/mt) ex-works. The prices for local scrap equivalent to shredded in Pakistan have remained at PKR 120,000/mt ($611/mt) ex-warehouse, the same as last week. However, due to the continuous devaluation of the Pakistani rupee, the dollar-based quotations of rebar and scrap have dropped by around $39/mt and $23/mt, respectively, week on week.