Import scrap trade in Pakistan has been practically silent this week, with both traders and steel mills gradually returning to the market after a week-long holiday. Moreover, the buyers are said to be not in a hurry to book material, preferring closely to watch the developments in the global scrap market.
Consequently, import offers of shredded 211 scrap of European origin in containers to Pakistan have remained largely unchanged compared to the pre-holiday levels, at $545-550/mt CFR Qasim. Rare deals for small lots have been heard at $545-547/mt CFR Qasim.
However, following the end of holiday, on Friday last week, Pakistani producers of rebar have considerably increased their offers, aiming to offset the exchange rate fluctuations. “Local currency in Pakistan has severely devalued in the last few days, putting a further strain,” the representative of key Pakistan-based rebar mill stated. Accordingly, prices for 12-25 mm domestic rebar of grade 60 have risen to PKR 160,000/mt ($988/mt) ex-works, up PKR 4,000/mt ($25/mt) compared to the previous announcement. The latest offers of scrap equivalent to shredded have been heard at PKR 102,000-103,000/mt ($630-636/mt) ex-warehouse about ten days ago.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 160.909