The mounting uncertainty as regards the future developments in the global steel market, caused by the slump in iron ore prices and, in particular, the weak sentiments in the Turkish scrap market, have made Pakistani buyers more persistent in asking for discounts when negotiating new scrap bookings. As a result, by the end of the current week the tradable level for import shredded 211 scrap of European origin in containers to Pakistan has been hardly higher than $520-525/mt CFR Qasim, down $20-25/mt compared to the offers voiced in the previous week. Some suppliers are said to be ready to sell material even lower, at $515/mt CFR Qasim. “Activity is strong here in Pakistan. The prevailing downtrend in the global steel market makes us cautious though,” a representative of a Pakistan-based mill stated. Ex-UAE HMS offers have been heard at $505-510/mt CFR Qasim.
In the meantime, domestic prices of scrap equivalent to shredded are available at around PKR 108,000-110,000/mt ($649-661/mt) ex-warehouse Karachi and PKR 112,500/mt ($676/mt) ex-warehouse Lahore respectively. Official prices for 12-32 mm rebar of grade 60 in Pakistan have remained unchanged week on week at PKR 171,000-172,000/mt ($1,039-1,045/mt) ex-works Lahore, while most deals have been signed at PKR 165,000-170,000/mt ($1,002-1,033/mt) ex-works.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 165.015