Import scrap activity in Pakistan has mainly been muted in the past week, with most buyers holding back in anticipation of a clearer price direction in the global scrap market. Besides, despite the improved weather conditions, the business environment in the finished steel segment has remained unfavorable and most mills have cut their finished steel production as rebar inventories are increasing.
Import offers for ex-UK shredded scrap in containers to Pakistan have been heard at $560-565/mt CFR Qasim, compared to $560-570/mt CFR last week. “Several small bookings were done at $560-562/mt CFR this week, but most customers have been in a waiting mode as rebar sales have not improved yet,” a Pakistan-based trader told SteelOrbis.
In the meantime, current shredded 211 scrap offers from the US have remained firm at the level of the previous week, at $550/mt CFR. Ex-UAE HMS scrap offers have been voiced at $530-535/mt CFR, the same as last week.
The local sellers of domestic high grade scrap equivalent to shredded have been forced to lower their offers to obtain orders. According to sources, prices have declined to around PKR 116,500/mt ($661/mt) ex-warehouse, down PKR 4,000/mt ($23/mt) over the past week.
Meanwhile, prices for 10-12 mm rebar of grade 60 in Pakistan have remained mostly unchanged at PKR 188,000/mt (1,066/mt) ex-works. “Rebar prices are at the same levels for now due to slower sales. Mills in the south have tried to increase prices, but there is no acceptance from customers,” a market insider said.
“We want to see the price direction in Turkey, but also more import scrap bookings are expected in the end of February-early March period before Ramadan starts in April, which may increase steel consumption,” another source stated.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 176.3