Imports of scrap have been limited in Pakistan this week and prices have been under pressure from the poor situation in the rebar market and by mills being affected by the recent announcement of power tariff increases.
The deal price level for ex-UK/Europe shredded scrap has settled at $404-408/mt CFR Qasim versus the tradable level of $405-410/mt CFR last week. A few deals have been reported at $404/mt CFR, $405/mt CFR, and $405-408/mt CFR. At the same time, offers have been mainly at $408-410/mt CFR, though some sellers did not want to push volumes and have been offering at $415/mt CFR, which is said to be an unrealistic level for now. “The increases in electricity and gas charges affect the local market so much,” a market source said.
On Sunday, the Pakistan Association of Large Steel Producers made an announcement that power tariffs will be increased by 25 percent, which may result in rebar price increases of PKR 8,000-11,000/mt ($29-40/mt) due to rising costs.
In the local market, the tradable level for local 10-12 mm rebar of grade 60 has moved up slightly already to around PKR 245,000-250,000/mt ($886-904/mt) ex-works, up by PKR 5,000/mt ($18/mt) on the higher end of the range.
Prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 275.34
