Most offers for imported shredded scrap in containers originating from the EU and the UK to Pakistan have remained at relatively the same levels as compared to last week. Meanwhile, after quite a high number of deals were signed last week, this week most Pakistani buyers have been inactive due to slow end-user demand ahead of the upcoming elections in February.
Specifically, following several deals signed for ex-EU/UK shredded scrap in the range of $437-440/mt CFR last week for around 7,000-10,000 mt in total, this week most offers have been voiced at the last week’s levels of $435-445/mt CFR, though no fresh deals have been reported so far. According to sources, the estimated time of arrival (ETA) is being postponed for most shipments in transit from the EU/UK, which may create supply chain issues, as expected for a while now. “Buying interest remains sluggish in Pakistan, while freight increase is the new reality for origins and destinations like Europe and the UK,” a Pakistani trader told SteelOrbis.
Offers for ex-Middle East HMS scrap have been heard at $410/mt CFR for the beginning of February shipment, versus $405-410/mt CFR last week. Besides, according to sources, offers for shredded scrap for Middle East origins, ex-Bahrain and ex-Dubai, in particular, have been voiced at as high as $455-465/mt CFR for February shipment.
Meanwhile, most market insiders in Pakistan have been pointing to subdued rebar sales, with the market showing a cautious approach ahead of the national elections on February 8. The tradable prices for local 10-12 mm rebar of grade 60 in Pakistan have settled at PKR 265,000/mt ($947/mt) ex-works. However, official offers from local mills have been voiced at PKR 271,500-273,500/mt ($970-977/mt) ex-works this week. Offers for local scrap equivalent to shredded have been voiced at around PKR 170,000/mt ($607/mt) ex-warehouse, down by PKR 3,000/mt ($11/mt) over the past week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.96