This week, Pakistani scrap importers have secured multiple bookings for ex-UK and ex-EU shredded scrap, benefitting from additional discounts amid softening global prices. Despite cautious sentiment, low inventories among domestic buyers are keeping sales intact in certain pockets. On the macroeconomic front, the recent defence pact between Pakistan, Saudi Arabia and Qatar is expected to support economic stability and foster growth. At the same time, market participants expect stronger activity from October onward, with improved weather conditions likely to facilitate smoother scrap inflows and mill operations.
More specifically, following several deals signed for ex-UK/EU shredded scrap in containers at $367-370/mt CFR at the end of last week and at $365-367/mt CFR at the beginning of this week, by the middle of this week more deals for ex-UK scrap are reported to have been done at $363-365/mt CFR. “At least 5,000-7,000 mt in total have been booked during the past seven days,” a market insider told SteelOrbis. Meanwhile, new offers for shredded scrap from the UK and Europe have been voiced at $363-365/mt CFR, while most bids have settled at $360/mt CFR.
At the same time, according to sources, a deal for around 1,000 mt of ex-UK HMSI/II 80:20 has been signed at $340/mt CFR. Besides, at the end of last week Pakistani buyers also booked 1,000 mt of ex-Brazil busheling scrap and 1,000 mt of bundle scrap at $369-370/mt CFR and at $315/mt CFR, respectively.
Meanwhile, offers for ex-UAE HMS grade scrap have been voiced at $360-365/mt CFR, compared to $365/mt CFR last week, while shredded scrap offers from the UAE have been voiced at $385/mt CFR, down by $2/mt over the past week.
Local prices of scrap equivalent to shredded in Pakistan have remained at around PKR 138,000-140,000/mt ($490-498/mt) ex-warehouse. Besides, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000/mt ($835/mt) ex-works, the same as last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 281.40