Import scrap prices in Pakistan have softened slightly this week, as mills limited purchases to immediate needs amid sluggish finished steel sales ahead of Ramadan. As a result, shredded import indications have edged down from last week’s firmer levels, while the gap between buyers’ bids and sellers’ targets has remained evident.
This week, offers for ex-UK/EU shredded scrap have been heard at $380-385/mt CFR, down from $383-390/mt CFR in the previous week, though some sellers have been refusing to go lower and have kept offering their material at the same prices as last week. According to sources, a few deals were signed at around $378/mt CFR earlier in the week, though higher levels have not attracted sufficient buying interest. In the meantime, one offer for ex-UK/EU shredded scrap has been heard at $380/mt CFR Port Qasim for around 500-1,000 mt from an open yard, while another offer for shredded scrap of the same origin has been reported at $385/mt CFR Port Qasim for similar volumes, subject to reconfirmation. Meanwhile, some market participants have also been voicing higher ex-UK/EU shredded indications at $385-390/mt CFR for February shipment.
“Bids have been voiced as low as $375/mt CFR, while sellers are mostly targeting around $380/mt CFR, leaving workable levels for shredded at roughly $375-380/mt CFR Port Qasim,” a market insider told SteelOrbis.
Meanwhile, sources indicate that price ideas for ex-UAE scrap have weakened, with UAE suppliers said to have lowered their levels by around $10/mt over the past week. Against this backdrop, offers for HMS I/II 80:20 have been heard at $368-370/mt CFR Pakistan this week, down from $373/mt CFR in the previous week, while market insiders add that ex-Dubai cargoes, especially HMS, are currently more workable given the sluggishness of rebar sales. Besides, an offer for ex-UAE shredded scrap has been heard at $395/mt CNF Port Qasim.
In the domestic market, finished steel demand remained slow ahead of Ramadan, with most transactions reported on a hand-to-mouth basis and with buying interest still limited. Rebar prices have been heard at PKR 225,000-226,000/mt ($805-809/mt) ex-works, up by around PKR 2,000/mt ($7/mt) from last week’s average level, though overall market activity remains subdued. Local scrap prices have been reported at around PKR 138,000-140,000/mt ($494-501/mt) ex-warehouse, broadly stable week on week.
In the meantime, Turkey’s import scrap prices have remained broadly stable in sporadic bookings this week, though sellers are facing stronger resistance as offer availability increases and mills’ buying appetite remains limited.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.40