During the current week, import offers of shredded 211 scrap of European origin to Pakistan have been voiced at levels similar to last week, namely at $560-565/mt CFR. Despite the Pakistani re-rollers not being in a hurry to book material, preferring to closely monitor the developments in the global scrap market, a few deals at the lower end of the abovementioned range have been fixed. Meanwhile, ex-UAE HMS is available at around $525/mt CFR, according to market insiders.
Meanwhile, the increase in local scrap equivalent to shredded prices has continued to gain momentum. The Pakistani suppliers have raised their offers by around PKR 5,000/mt to PKR 123,200/mt ($721/mt) ex-warehouse Lahore this week.
Following the increase in official offers to PKR 185,000-187,500/mt ($1,082-1,080/mt) ex-works last week, the Karachi-based mills in Pakistan have managed to book material at PKR 183,000-187,500/mt ($1,070-1,082/mt) ex-works. “High volatility of exchange rate is a big challenge now to do business,” an official of major rebar mill in Pakistan stated.
All prices on Pakistani rupee basis include 17 percent VAT.