Market sentiment in Pakistan’s import scrap market has remained under pressure amid weak local demand. At the same time, according to sources, despite disruptions in border conditions impacting the movement of domestic scrap and finished steel, improvements are anticipated as routes reopen.
More specifically, offers for ex-EU/UK shredded scrap in containers have been voiced at $368-372/mt CFR, compared to $373-375/mt CFR last week. “Import prices have decreased again this week. However, demand on our side remains quite low at the moment, and market inquiries are limited below the $370/mt CFR level,” a market insider told SteelOrbis.
Besides, following several deals for ex-UAE shredded scrap in containers signed at $385/mt CFR last week, this week new offers have been reported at $380/mt CFR and even slightly below.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have moved up by around PKR 3,000-4,000/mt ($11-14/mt) week on week to PKR 134,000-138,000/mt ($477-491/mt) ex-warehouse. The tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000-240,000/mt ($837-854/mt) ex-works, up by PKR 3,000-5,000/mt ($11-18/mt) week on week.
“The market outlook will largely hinge on global scrap dynamics, especially in Turkey, and the recovery of local rebar demand,” a representative of one mill commented.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 280.90