Pakistan’s imported scrap market has come under renewed pressure over the past two weeks, with prices continuing to edge lower amid subdued trading activity. While the Turkish market has shown a steady upward trend, Pakistan has failed to follow suit, as both scrap and rebar prices remain stuck at depressed levels.
More specifically, this week most offers for ex-EU/UK shredded scrap in containers have dropped to $360/mt CFR, down by $3-5/mt week on week and down by $5-10/mt over the past two weeks. According to sources, last week a deal for around 5,000 mt of shredded scrap from northern Europe was signed at $360-363/mt CFR Qasim, while this week bids have been voiced at $355/mt CFR.
Meanwhile, offers for ex-UAE HMS/PNS grade scrap have been voiced at $353/mt CFR, compared to $360-362/mt CFR two weeks ago, while shredded scrap offers from the UAE have settled at around $380/mt CFR and below, versus $385/mt CFR two weeks ago.
“Demand for rebar is weak, and prices have shown little fluctuation in recent days. Ongoing liquidity challenges have further weighed on market sentiment, with payment terms now extended from the usual 30-60 days to as long as 90 days - a clear sign of tightening financial conditions and an uncertain outlook for recovery,” a market insider told SteelOrbis.
At the same time, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 135,000/mt ($476/mt) ex-warehouse, the same as two weeks ago. Besides, the tradable level for local 10-12 mm rebar of grade 60 has remained at PKR 230,000/mt ($812/mt) ex-works.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 283.28