Since the easing of lockdown restrictions, demand for scrap in Pakistan has notably increased. Having faced a scrap shortage in the local market caused by the lockdown and reduced steel production in general, Pakistani steel producers have returned to active negotiations recently.
Offers for shredded scrap of European origin in containers have been reported at $290-295/mt CFR Qasim. Buyers have been bidding mostly at $275-280/mt CFR in the past few weeks.
Local scrap prices are currently standing at PKR 68,000-69,000/mt CPT, according to sources.
The upsurge in construction activity amid the easing of the lockdown have also exerted a positive impact on sentiment in the Pakistani scrap market. “A very good construction package announced by the federal government which is expected to cause a rise in construction activity until at least December 2020, mega projects such as the Diamer-Bhasha dam construction… All this indicates that Pakistan is going to remain a strong contender for scrap,” a representative of a Pakistani rebar mill stated.