While import prices for shredded scrap in containers have continued to increase by around $3-5/mt over the past week, import scrap activity in Pakistan has remained muted due to slow demand and the low-capacity utilization rates of local steel producers during Ramadan and due to the approaching Eid holiday. According to sources, scrap sales are unlikely to pick up next week, as market activity is expected to slow further during the Eid holiday from March 31 to April 2.
According to sources, several deals for around 2,000 mt in total of ex-EU/UK shredded scrap have been signed at $390-393/mt CFR this week, up by $5/mt week on week. Meanwhile, most offers for shredded scrap have settled at $395-398/mt CFR, up by $3-5/mt over the past week. “Most bids have been at $390/mt CFR, while offers are approaching $400/mt CFR. Its bids against offers now,” a Pakistani based trader said.
Besides, offers for ex-UAE shredded scrap have been voiced at $395-396/mt CFR, while offers for HMS grade scrap have settled at $370/mt CFR level.
“Although some recovery in trade activity is anticipated after the holiday, trade may remain subdued due to restricted letter of credit (LC) openings and increasing global scrap prices,” a market insider told SteelOrbis.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have increased slightly to PKR 140,000-144,000/mt ($498-512/mt) ex-warehouse, up by PKR 1,000/mt ($3.5/mt) on the higher end of the range week on week. Furthermore, the tradable level for local 10-12mm rebar of grade 60 has been heard at PKR 240,000-244,000/mt ($854-868/mt) ex-works, up by PKR 4,000/mt ($14/mt) on the higher end of the range week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 281.00