Pakistan’s import scrap market has shown a mild downward correction this week, as mills have remained cautious due to sluggish finished steel demand ahead of Ramadan, despite ongoing procurement for near-term requirements. As a result, import shredded indications and bookings have eased slightly compared to the previous week’s firmer levels.
This week, offers for ex-UK/EU shredded scrap have generally been heard at $383-390/mt CFR Pakistan, down from $385-392/mt CFR in the previous week. According to sources, this week a deal for shredded at $382/mt CFR has been reported for 2,000 mt, followed by another booking at $384/mt CFR for 1,000 mt, while a later deal has been reported at $385/mt CFR for 3,000 mt. Market insiders note that higher offers were not accepted, as rebar sales have not picked up sufficiently, even though some mills have increased their ex-mill prices. At the same time, the workable price range for shredded scrap is seen at $380-385/mt CFR Pakistan, reflecting a slight softening compared to last week’s deals.
As for ex-UAE material, HMS I/II 80:20 has been offered at $373/mt CFR Pakistan, down by $2/mt week on week, with market sources indicating that the market is now in a correction phase. However, no confirmation has been received at the time of writing.
Meanwhile, according to sources, market sources have also been closely monitoring the government’s newly announced support measures for industry and exporters, including lower industrial power tariffs and export financing costs, though the immediate impact on steel demand remains uncertain.
In the domestic market, sentiments remain mixed, with market participants pointing to limited demand for finished steel and only modest buying interest for raw materials. The tradable level for local 10-12 mm grade 60 rebar is heard at PKR 222,000-225,000/mt ($793-804/mt) ex-works, up by PKR 2,000/mt on the lower end week on week. At the same time, local prices of scrap equivalent to shredded are reported at around PKR 138,000-140,000/mt ($493-500/mt) ex-warehouse, up by around PKR 3,000/mt ($11/mt) on the lower end compared to last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.79