Trade activity in Pakistani import scrap market has stayed muted amid ongoing currency volatility and weather-related disruptions. Heavy rains and weak construction demand have curbed new bookings, while liquidity challenges continue to dampen sentiments. Traders reported that while several offers are available in the market, buying activity remains limited as participants adopt a cautious stance.
More specifically, offers for ex-EU/UK shredded scrap in containers have settled at $380-385/mt CFR, the same as two weeks ago, with deals reportedly done at $380-385/mt CFR level during the past week. However, by Wednesday, August 20, most sources estimate the workable level at not higher than $380/mt CFR level this week.
Meanwhile, offers for ex-UAE HMS grade scrap have been voiced at $370/mt CFR, down by $5/mt over the past two weeks.
“Pakistan’s finished steel market stayed broadly steady, with prices managing to hold firm even as liquidity constraints persisted. Market morale in Khyber Pakhtunkhwa was hit by ongoing flood conditions, though a relatively stable—and slightly stronger—PKR/USD exchange rate provided some relief,” a market insider told SteelOrbis.
“Pakistan’s import scrap market is expected to remain confined within a narrow range in the short term, with shredded scrap hovering near $380/mt CFR. A gradual pickup in mill procurement could support a modest recovery by mid-September, provided flooding subsides and the PKR shows signs of stability,” a Pakistani based trader said.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 145,000/mt ($514/mt) ex-warehouse, up by PKR 5,000/mt ($18/mt) over the past two weeks. However, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000-240,000/mt ($833-851/mt) ex-works, moving sideways since the beginning of August.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 281.95