Import scrap activity in Pakistan has been slower this week affected by problems with opening letters of credit (LCs) coupled with slow finished steel demand. Thus, customers have continued to book materials cautiously, pushing for more discounts.
More specifically, offers for ex-UK/EU shredded scrap in containers have been voiced at $410-415/mt CFR, the same as at the end of last week. However, new deals for at least 3,000-4,000 mt in total are reported to have been signed at $408-410/mt CFR, down by $5-10/mt week on week.
Meanwhile, although local rebar producers have been strongly affected by soaring energy costs, this week their prices for local 10-12 mm rebar of grade 60 have decreased to PKR 265,000-268,000/mt ($951-962/mt) ex-works, down by PKR 12,000-14,000/mt ($43-50/mt) over the past week, mainly amid the strengthening of the Pakistani rupee against the US dollar. However, the tradable level has been estimated at PKR 260,000/mt ex-works ($/mt) level, according to sources.
In the second week of October, the value of the Pakistani rupee has risen to 278.70 to the US dollar, from 284.36 in the first week on the month.
Local scrap prices equivalent to shredded have settled at PKR 155,000-160,000/mt ($556-574/mt) ex-warehouse, down by PKR 10,000-15,000/mt ($36-54/mt) over the past week, though, according to sources, trade activity has been extremely slow.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.70