Pakistan’s import scrap market has moved up further this week, with fresh bookings for ex-EU shredded scrap concluded at higher levels compared to last week. However, overall market activity has started to slow, as local players are shifting into Eid holiday mode (March 19-20). At the same time, the absence of firm ex-UAE offers due to the war in the Gulf has supported the upward movement in prices of ex-EU/UK scrap.
More specifically, offers for ex- EU/UK shredded scrap have been heard at $405-410/mt CFR this week, up from $385-395/mt CFR heard last week. Some market participants have also recalled hearing $385/mt CFR early last Monday, indicating how quickly the market has moved up over the past few days. According to market insiders, 3,000 mt of ex-EU shredded scrap were sold at $400/mt CFR Qasim at the beginning of this week, followed by another deal for 1,000 mt at $405/mt CFR Qasim. Besides, one more deal, for around 5,000 mt, is reported to have been signed at $405/mt CFR. As a result, the tradable level for ex-EU/UK shredded scrap are now estimated at $400-405/mt CFR.
On the ex-UAE side, no firm offers have been heard in the market this week. “Dubai suppliers are currently not offering to Pakistan, while Jebel Ali port is still not fully operational, making it difficult to get fresh offer indications,” a source in the market told SteelOrbis. Given this situation, buying interest in ex-EU material has increased.
In the local Pakistani market, activity has slowed significantly, with buying and selling reported to be very limited in the last week before the Eid holiday. Market participants indicate that the local market is moving into holiday mode and that overall transactions are scarce. Local scrap equivalent to shredded is reported at around PKR 146,000/mt ($522/mt) ex-warehouse, up by around PKR 5,000/mt ($18/mt) week on week. At the same time, offers for grade 60 rebar have been heard at PKR 245,000/mt ($876/mt) ex-works, up around PKR 17,000/mt ($61/mt) from PKR 228,000-229,000/mt ($816-820/mt) ex-works last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.67