Although the Eid holiday officially ended last weekend, April 13, in Pakistan most market insiders have not returned to work so far. However, those who have returned have reported rises in import scrap prices. According to sources, most Pakistani customers will maintain a wait-and-see stance until the end of this week and will make new purchases next week, though most anticipate another hike in prices.
More specifically, offers for ex-UK/EU shredded scrap in containers have been voiced at $430/mt CFR and slightly higher, versus $420-425/mt CFR before the holiday. According to sources, Pakistani customers have been bidding at $425-427/mt CFR levels, but trade activity has remained very slow and the market has been mostly quiet.
Offers for ex-Dubai HMS grade scrap have been heard at $405/mt CFR, up by $5/mt week on week. Besides, offers for ex-US shredded scrap in containers have settled at $425/mt CFR.
“We expect scrap prices to increase in Pakistan next week as freight rates are anticipated to rise due to the conflict in the Middle East” a market insider told SteelOrbis, adding, “We also hope that, with some strength coming in China, global sentiments will finally improve.” Also, some positivity still persists in Turkey, and many believe that, when Turkish mills return to the market, prices have some potential to increase.
At the same time, in the domestic market, most offers for scrap equivalent to shredded have remained at PKR 160,000/mt ($575/mt) ex-warehouse, while local prices for 10-12 mm grade 60 rebar are still at PKR 255,000-260,000 ($916-934/mt) ex-works, the same as before holiday, though new prices are expected to be announced next Monday, April 22.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.35