The import scrap trade in Pakistan has started to recover this week, with both traders and mills gradually returning to the market after holidays which lasted a few weeks. However, with bearish sentiments in the global steel market mounting lately, Pakistani scrap buyers have maintained a cautious approach as regards new bookings, anticipating prices will move down further.
Accordingly, after a few deals for ex-UK/EU shredded scrap were signed at $570-575/mt CFR Qasim at the beginning of this week, the material has changed hands at $560-567/mt CFR. Meanwhile, by Wednesday, May 11, import offers for shredded 211 scrap of European and UK origin in containers to Pakistan fell to $555-560/mt CFR, down by $20-25/mt over the past week. “Pakistani customers are avoiding giving further bids and wish to see the market settling first. Business activity stood still when the news about new Turkish scrap prices broke yesterday,” a market insider told SteelOrbis.
“We think Pakistani importers will not conclude new deals at above $550/mt CFR and some even expect to see the $535/mt CFR level,” a Pakistan-based trader stated.
Meanwhile, local prices for 10-12 mm rebar of grade 60 in Pakistan have decreased by around PKR 2,000-4,000/mt ($11-21/mt) to PKR 200,000-206,000/mt ($1,057-1,088/mt) ex-works over the past two weeks.
The price for local scrap equivalent to shredded in Pakistan has dropped to around PKR 120,000/mt ($634/mt) ex-warehouse, down by PKR 2,700/mt ($14/mt) compared to the levels valid two weeks ago.
$1 = PKR 189.27