Inquiries for import scrap from customers in Pakistan have been increasing over the past week given the necessity to replenish stocks after holidays. Meanwhile, prices have decreased slightly in new deals, though the sentiment about the future trend remains unclear.
Accordingly, offers for shredded 211 scrap of UK and European origin in containers to Pakistan have settled at $410/mt CFR, down by $5-10/mt over the past week. Besides, after several for ex-UK shredded scrap were signed at $415/mt CFR last week, the material changed hands at $410-412/mt CFR this week.
Meanwhile, apart from shredded scrap from the UK and Europe, more offers have been reported for ex-UAE HMS grade scrap at $385/mt CFR this week, versus $398/mt CFR last week. According to sources, few deals have been signed at lower levels for ex-Dubai HMS materials, though volumes were very limited.
According to market insiders, although trade has improved to some level, in general, steel demand has remained rather sluggish in Pakistan due to economic issues and current bad weather conditions. Thus, most buyers are likely to remain cautious in terms of new purchases in the short run.
At the same time, in the local market most offers for scrap equivalent to shredded have been voiced at PKR 173,000/mt ($630/mt) ex-warehouse, down by PKR 2,000/mt ($7/mt) over the past week. Besides, the tradable level for local 10-12 mm rebar of grade 60 has remained at PKR 250,000/mt ($911/mt) ex-works, while offers from mills have been voiced at PKR 263,000-265,000/mt ($958-966/mt) same as last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 274.43