Import scrap prices in Pakistan have softened further over the past week, with buyers remaining cautious after completing early February restocking and with finished steel sales observed to be slow. As a result, import shredded scrap offers have edged down slightly, while most bids have been heard at even lower levels as overall sentiment has remained on the soft side.
More specifically, this week ex-EU/UK shredded scrap offers have been heard at $378-385/mt CFR Qasim port, down from $380-385/mt CFR in the previous week. According to sources, several deals for shredded scrap were concluded earlier in the week at $378-383/mt CFR level. Besides, a few deals have also been voiced at $375/mt CFR. At the same time, according to sources, tradable prices for shredded scrap have generally been discussed at around $375-380/mt CFR, with buyers remaining resistant to prices closer to $382-385/mt CFR, given the slow local market.
In the meantime, indicative offers for ex-UAE material have also eased, with HMS scrap heard at $360/mt CFR, down by $10/mt from last week. “A deal for sheared HMS was concluded at $355/mt CFR, while fresh containerized offers for a mixed HMS/PNS cargo have been heard today at $352/mt CFR, and for sheared HMS/PNS at $355/mt CFR, both for 500-1,000 mt lots with 21 free days”, a market insider told SteelOrbis.
“Trading is likely to remain slow in the coming days, with some improvement expected closer to post-Eid restocking,” a Pakistani trader told SteelOrbis.
Meanwhile, in the Pakistani domestic market, trading conditions have remained slow and unsupportive, with finished steel sales observed to be sluggish. In particular, local scrap prices equivalent to shredded are reported at around PKR 136,000-138,000/mt ($487-494/mt) ex-warehouse, down by around PKR 2,000/mt ($7/mt) week on week. Meanwhile, rebar of grade 60 is traded at PKR 225,000-226,000/mt ($804-808/mt) ex-works, largely stable from last week, though overall market activity remains subdued.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.45
