Pakistan’s import scrap market has moved up further over the past week, though overall sentiment has remained cautious compared to the previous week. Trading activity has remained selective, as cash flow pressure has continued to affect buying decisions, even though stronger import prices have started to feed through into the domestic market.
More specifically, 500 mt of ex-UK shredded scrap have been sold at $418/mt CFR Qasim this week, compared to concluded deals at $408-412/mt CFR reported last week. In addition, a deal for ex-EU shredded scrap has been signed at $419/mt CFR Qasim for 1,000 mt. Besides, talk about another deal for 1,500 mt of ex-UK shredded scrap signed at $425/mt CFR has been circulating in the market. Meanwhile, current offers for ex-UK/EU shredded scrap have been heard at $420-430/mt CFR, versus $410-415/mt CFR last week, while some market sources have also reported offers at $420-425/mt CFR.
“Buyers are still cautious and only looking at workable numbers for prompt needs,” a Pakistani trader told SteelOrbis.
In the Pakistani domestic market, local scrap prices have moved up following the increase in imported shredded scrap prices. Local scrap equivalent to shredded is now reported at PKR 160,000/mt ($573/mt) ex-warehouse, compared to PKR 145,000-150,000/mt ($517-535/mt) ex-warehouse heard last week. Meanwhile, grade 60 rebar prices are heard at PKR 260,000/mt ($932/mt) ex-works and above, compared to PKR 245,000-250,000/mt ($874-892/mt) ex-works heard last week.
Domestic steel prices have increased, though demand has remained cautious, with market sources indicating that furnaces have prioritized electricity bill payments over scrap purchases. A market insider told SteelOrbis that the increase in imported shredded scrap prices has started to feed through into the local market, while buyers have remained careful in their bookings.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.96