This week, most offers for import scrap in Pakistan have remained relatively unchanged or showing a just slight upward bias in several offers. However, most customers have been insisting on discounts despite some optimism mounting in the domestic finished steel market supported by the reduction of interest rates by one percent, which has sent positive signals.
Specifically, restocking has continued for shredded scrap in containers from the EU and the UK at $376-380/mt CFR levels, mainly the same as last week. Meanwhile, offers have moved up to $385/mt CFR, against $380-385/mt CFR last week, though customers have kept looking for “old price levels to buy”. “Buyers are still targeting older price levels at $375-376/mt CFR,” a Pakistani trader told SteelOrbis.
“Rebar demand has been improving while prices remain range-bound, and, with scrap availability expected to tighten from next month, the uptake of finished products may increase. Additionally, the limited availability of domestic scrap, coupled with steady demand for finished steel, is likely to drive better import activity,” a market insider said.
In the meantime, local prices for rebar have declined during the past week with offers for 10-12 mm rebar of grade 60 standing at PKR 240,000/mt ($861/mt) ex-works, down by PKR 5,000/mt ($18/mt) week on week. However, offers for local scrap equivalent to shredded have settled at PKR 146,000/mt ($524/mt) ex-warehouse, increasing by PKR 6,000/mt ($22/mt) since last week.
All prices on Pakistani rupee basis include 18 percent VAT.|
$1 = PKR 278.64