Pakistan’s import scrap market has remained largely firm over the past week, though tradable prices have eased slightly from the peaks seen last week as buyers are still cautious and most major bookings were concluded earlier last week.
More specifically, offers for ex-UK/EU shredded scrap have been heard at $428-435/mt CFR this week, compared to $425-435/mt CFR heard last week. At the same time, buyers’ price ideas have been reported at $420-425/mt CFR, versus the $425-430/mt CFR levels heard last week. According to sources, while ex-UK/EU shredded scrap has been offered at $430/mt CFR, a few deals have been signed at around $425/mt CFR Qasim. However, this week trade activity has been rather limited, with buyers pushing for additional discounts.
“The market is quiet for now, with buyers still targeting lower levels despite firm offers,” a Pakistani trader told SteelOrbis.
No fresh offers for ex-UAE material have been heard in the market this week, with Middle Eastern cargoes remaining largely absent. Market participants report that the UAE market is effectively closed for Pakistan at present, while ongoing uncertainty regarding shipping through the Strait of Hormuz has kept sellers away. As a result, buying interest has shifted further toward the UK, Europe and Africa. In particular, ex-South Africa shredded scrap has been booked at $417/mt CFR Qasim, according to market sources.
Market sentiment has been mixed, with the week mostly quiet amid hopes of possible US-Iran negotiations, while the situation around the Strait of Hormuz has remained fluid. At the same time, the correction in crude oil prices has started to put pressure on the local market.
Meanwhile, in the Pakistani domestic market, sentiment has turned quieter and softer after the recent surge, with local prices for commercial grades reported to have declined following the correction in crude oil prices. According to sources, local scrap prices equivalent to shredded have been heard at PKR 150,000-160,000/mt ($537-573/mt) ex-warehouse, down from PKR 165,000-170,000/mt ($592-610/mt) ex-warehouse heard last week, with some sources still pointing to higher levels above $575/mt in certain regions. Meanwhile, grade 60 rebar prices have been heard at PKR 262,600-265,400/mt ($940-950/mt) ex-works in Karachi, compared to PKR 275,000-280,000/mt ($987-1,006/mt) ex-works last week.
“After the correction in crude oil, local prices have come down by around PKR 20,000/mt ($72/mt) in some segments, though sellers in the graded rebar segment are still resisting sharper cuts,” a source in the market told SteelOrbis.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.03
