Offers for import shredded scrap in containers to Pakistan have continued to gain momentum during the past week, following the sustainable uptrend in the global market. Although Pakistani mills have raised prices for finished steel, attempting to reflect increased input costs, their concerns are escalating. Most of them state that scrap prices are poised to jump further, though the local rebar market is not ready to accept such volatility yet.
This week, offers for shredded 211 scrap of European origin in containers to Pakistan have mostly been voiced at $350-355/mt CFR Qasim, up by $10-13/mt compared to the previous week. However, by the end of the given period some offers have even touched $360/mt CFR. “The prices of finished products are not in line with the buying. However, besides the bullish global market, there is additional support from a shortage of supply locally. That means that prices will move up further unless the global market sees a correction,” a representative of a major longs mill in Pakistan commented. “We are afraid we are going to see $400/mt CFR for scrap shortly. Hence, we have stopped giving prices. Hopefully, on Monday things will become clear,” another rebar producer stated.