Pakistan’s import scrap market has remained largely stable to slightly firmer this week, supported by limited pre-Ramadan restocking, though overall buying activity has stayed subdued. Meanwhile, demand remains selective, with most mills covering only immediate requirements ahead of the expected slowdown during Ramadan.
This week, offers for ex-EU/UK shredded scrap have been heard at $385-392/mt CFR Pakistan, compared to $370-375/mt CFR levels reported two weeks ago. Meanwhile, buyers’ bids and concluded deals have been reported at $385-387/mt CFR, up from deals concluded at around $365-372/mt CFR in the previous period.
According to sources, market participants report that negotiable levels are currently close to $385/mt CFR, depending on shipment size and payment terms. Overall, the workable price range for ex-EU/UK shredded scrap has moved up by around $10-15/mt compared to two weeks earlier, mainly driven by short-term restocking interest ahead of Ramadan rather than by a structural improvement in demand.
Offers for ex-UAE shredded scrap have been heard at $400-403/mt CFR Qasim, compared to $375-385/mt CFR levels heard two weeks ago. “The cargo has been quoted with loading from February 27 onwards and with shipment expected within two weeks,” a market insider told SteelOrbis. However, the offer remains subject to reconfirmation and no deal has been confirmed by the time of publication. Meanwhile, ex-UAE HMS I/II 80:20 has been offered at $375/mt CFR Qasim, compared to tradable levels of $356-365/mt CFR reported two weeks ago.
In the meantime, Turkey’s import scrap market has remained largely stable this week, with recent deals indicating that Turkish mills’ strategy of holding back to curb the earlier uptrend in deep sea scrap prices has been relatively successful. More specifically, an ex-Sweden booking has been reported for HMS I/II 80:20 at $375/mt CFR Turkey, with shredded and bonus at $395/mt CFR, indicating a $2/mt increase for ex-Baltic scrap prices. As a result, the current firm trend with a small tendency to increase in Turkey has continued to affect sentiment in Pakistan.
In the domestic market, steelmakers’ operating rates have remained low, with market sources estimating that only around 30 percent of mills are currently active, mainly purchasing imported scrap for pre-Ramadan stocking. Activity is expected to slow further during Ramadan, as production typically declines during the fasting month. The tradable level for local 10-12 mm grade 60 rebar is still reported at PKR 220,000-225,000/mt ($785-804/mt) ex-works, the same as two weeks ago. Local scrap equivalent to shredded has been reported at around PKR 135,000-140,000/mt ($482-500/mt) ex-warehouse, with some sources still citing higher offers close to PKR 141,000/mt ($504/mt), broadly stable compared to two weeks ago.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.84