This week, the Pakistan scrap market has continued to face extremely low capacity utilization rates of longs steel manufacturers coupled with still weak finished steel sales and slow construction activities in Pakistan given the lengthy holidays in the country. At the same time, import scrap prices have continued to decrease this week, with a few deals reported at lower levels.
Accordingly, following a few deals for around 4,000 mt in total of ex-UK shredded scrap in containers signed at $455/mt CFR at the end of last week, a fresh deal for around 1,000 mt of ex-UK materials has been reported at $445/mt CFR this week. Meanwhile, by Wednesday, May 3, fresh offers for UK origin shredded scrap have dropped to $440/mt CFR, indicating a $15-20/mt drop week on week. “Some occasional deals have been heard due to the necessity certain customers had to replenish their stocks, while, in general, the situation has remained very dull in Pakistan, with no cash, no major construction projects, and very slow buying,” a market insider told SteelOrbis.
“Next week will depend on developments in the Turkish scrap market in terms of the further price direction, but I doubt trade will significantly recover in the short run in Pakistan,” another source said.
Meanwhile, prices for 10-12 mm rebar of grade 60 in Pakistan have settled at PKR 270,000/mt ($956/mt) ex-works, though tradable prices have been voiced at PKR 260,000/mt ($921/mt) ex-works levels. Besides, offers for local scrap equivalent to shredded have remained at around $180,000/mt ($638/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 282.35