The price levels of scrap in recent deals and offers have increased over the past two weeks in Pakistan, mostly supported by the uncertainty in the global scrap market. Despite the relative silence in trading worldwide, most global scrap suppliers do not currently consider a decline in prices as an essential measure. Additionally, the rises in freight charges due to the limited availability of containers have contributed to the increase in scrap offer prices to Pakistan. Meanwhile, the recent lifting of the import scrap ban in China and, concurrently, the latest announcement of a national lockdown in the UK have only strengthened the concerns of Pakistani customers as regards further increase in prices.
While by the end of December most prices of shredded 211 scrap of European origin in containers were at $450-455/mt CFR Qasim, this week Pakistani mills have already been forced to purchase at prices that before the New Year holidays were considered to be “crazy and totally unworkable”. Accordingly, SteelOrbis has learned of fresh bookings for moderate volumes of shredded 211 scrap at $480/mt CFR Qasim for February shipment. In rare cases, import offers for shredded scrap have already reached $500/mt CFR Qasim.
Local mills increased their rebar prices subsequently. Accordingly, domestic 10 mm grade 60 rebar in Pakistan is available at PKR 135,000-135,500/mt ($843-847/mt) ex-works, including 17 percent VAT.
$1 = PKR 160.046