The sharp decline in scrap prices in the global market and, in particular, in scrap prices to Pakistan at the beginning of this week has caused Pakistani mills to adopt a wait-and-see stance even though the problem of feedstock availability domestically remains.
Accordingly, during the past week offers of shredded 211 scrap of European origin in containers to Pakistan have dropped by $45-50/mt to about $460/mt CFR Qasim. Meanwhile, Pakistani customers are cautious as regards new bookings, expecting a further decline in prices in the coming days. “Most buyers are showing resistance. A few small trades have been heard at $458/mt CFR Qasim and that is all,” a representative of a major mill in Pakistan stated. “There is no trading activity here this week. All are focused on the development of the situation in the global market, following a sharp drop in deal prices in Turkey,” a Pakistan-based trader commented. Despite the largely bearish sentiments prevailing among market players, some Pakistani mills do not exclude that the situation in Pakistan could move contrary to the global situation. “There is talk that traders have around 15,000-20,000 mt of scrap at lower prices, but, once these volumes are sold, prices will bounce back up as yards are still tight on supply,” a producer stated.
Meanwhile, domestic 10 mm grade 60 rebar, as planned, has increased by PKR 2,000/mt ($13/mt) compared to the previous week, to PKR 140,000-141,000/mt ($869-875/mt) ex-works, including 17 percent VAT, up PKR 2,000/mt ($13/mt). “In the south demand is stable, while in the north positive changes are expected in the coming days as the days get longer and fog issues are coming close to the end,” a rebar seller commented.
$1 = PKR 159.932