Trade activity in the import scrap market in Pakistan has remained subdued as most Pakistani producers have been refraining from new purchases given low finished steel demand and rather high inventory levels. At the same time, most offers have been moving sideways, though most buyers are still bidding at lower levels, anticipating price drops in new trades.
More specifically, offers for ex-EU/UK shredded scrap in containers have been estimated at $400/mt CFR, the same as last week, though occasional deals have still been reported at $395-397/mt CFR, while a number of bids have been voiced even at $390-392/mt CFR levels. Furthermore, according to sources, offers for ex-Middle East HMS grade scrap have been heard at around $390/mt CFR, the same as last week.
At the same time, according to sources, news of the reduction of electricity tariffs generated several rumors in the market, exerting downward pressure on prices. “Customers are misdirected by rumors and prefer to wait two or three days for some clarity,” a market insider said, adding, “Some improvement in construction activities is expected during the winter season which may positively influence the market, pushing up buying interest in import scrap.”
Meanwhile, offers for local rebar of grade 60 10-12 mm from mills have been voiced at around PKR 250,000/mt ($900/mt) ex-works, mainly the same as last week. Besides, offers for local scrap equivalent to shredded settled at PKR 150,000/mt ($540/mt) ex-warehouse, the same as last week, though bids have been reported at PKR 145,000/mt ($522/mt) ex-warehouse level.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 277.68