The rapid price increase seen in the global scrap market has continued to trigger higher offers for import shredded scrap in containers to Pakistan. Meanwhile, Pakistani customers have no other alternatives but to accept prices, being under significant pressure from the tight supply in the domestic market.
Accordingly, within the current week alone, offers for shredded 211 scrap of European origin in containers to Pakistan have increased from $370-375/mt CFR Qasim to $380-385/mt CFR Qasim. “Following a few bookings at $380/mt CFR, by the end of this week we are already unable to find any offer lower than $385/mt CFR,” the representative of a Pakistani mill stated. Another mill booked a few lots of shredded scrap in containers from Europe (500-2,000 mt each) at $364-380/mt CFR within the last two weeks, with the high end of the range being fixed in the deals done this week.
Taking into account the current situation, most Pakistani customers are fairly sure that the uptrend in the market will continue for a while yet. “Among other things - winter weather in the exporting countries, increased domestic demand, etc. - we believe that the resumption of scrap imports by China will also lead to a further price rise in the global market,” one Pakistani source commented.