Pakistan’s import scrap market has remained under pressure over the past week. Although some fresh bookings have been reported at lower levels, buyers have continued to be cautious and have been asking for additional discounts, while uncertainty following the fiscal budget has kept the market unsettled.
In detail, 1,000 mt of ex-EU/UK shredded scrap have been sold at $398/mt CFR Qasim this week, down by $2/mt from the $400/mt CFR Qasim level heard last week. Moreover, the latest offers from the UK and Germany have already been heard closer to $395/mt CFR Qasim, reflecting buyers’ continued resistance, with bids mostly remaining at $390-395/mt CFR. Besides, an offer for ex-EU/UK shredded scrap has been heard at $399/mt CFR Qasim for July shipment, though the cargo remains unsold at the time of reporting. “Buyers are still cautious and are trying to keep workable levels close to $395/mt CFR Qasim, as demand from the finished steel side has not improved yet,” a Pakistani trader told SteelOrbis.
Some sellers are still trying to keep offers at $400/mt CFR and above, and loaded cargoes have been heard offered at higher levels of $405-410/mt CFR Qasim. But even with new rare deals closed at the $400/mt CFR mark, the SteelOrbis reference price has settled at $395-399/mt CFR.
Meanwhile, ex-EU/UK HMS 80:20 and GI bundles have been sold at $390/mt CFR Qasim this week. Market sources have also indicated that Malaysia remains one of the origins supplying short-transit cargoes to Pakistan, while Middle Eastern consignments are still restricted to around 15 percent of usual volumes, though the situation has started to ease slowly.
As for ex-UAE material, after several weeks of limited availability linked to disruptions of Middle Eastern supply flows, ex-Dubai HMS and sheared HMS scrap have been offered at $399/mt CFR Qasim for July 10 shipment, with the sheared HMS offer still subject to reconfirmation.
In the Pakistani domestic market, mills’ operating rates have remained well below normal levels, as weak construction activity and subdued finished steel demand have continued to limit production.
Local scrap equivalent to shredded has been heard at PKR 141,250-142,500/mt ($507-512/mt) ex-warehouse, with the range remaining broadly close to last week’s PKR 140,000-145,000/mt ($502-520/mt), though the upper end has moved down amid continued pressure on local scrap prices. “The market is still trying to understand the impact of the budget, and customers are not comfortable taking positions before there is more clarity,” a market insider told SteelOrbis.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.50
