Import prices for shredded scrap have slipped in occasional deals for ex-UK scrap in Pakistan this week, with sentiment weighed down by depressed domestic steel prices and a lack of buying appetite. At the same time, mills continue to wait for a potential post-monsoon recovery, while market confidence has also been shaken by extensive flooding in the country.
More specifically, offers for ex-EU/UK shredded scrap in containers have settled at $378-382/mt CFR, down by $2-3/mt week on week, with several deals for around 3,000 mt in total for ex-UK scrap reported to have been done at $377-378/mt CFR, following a deal for around 1,000 mt signed at $382/mt CFR at the beginning of the week.
Meanwhile, offers for ex-UAE HMS grade scrap have been voiced at $370/mt CFR, the same as last week, while shredded scrap offers from the UAE have been voiced at $390/mt CFR.
According to sources, market sentiment has been further dampened by an “exceptionally high” flooding alert, as Punjab province - including the country’s second-largest city Lahore - faces severe risks due to heavy rains combined with India’s release of water from two dams.
Besides, discussions over a potential interest rate cut are circulating in Pakistan, but domestic steel pricing remains stagnant or depressed, with finished steel prices slipping as mills await a possible recovery after the monsoon season.
Local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 140,000/mt ($494/mt) ex-warehouse, down by PKR 5,000/mt ($18/mt) over the past week. Besides, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 230,000-235,000/mt ($811-829/mt) ex-works, moving down by PKR 5,000/mt ($18/mt) week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 283.60