Though the buying activity in the scrap market in Pakistan has remained limited due to the lockdown, traders have been reporting much higher offers coming from European suppliers. A sharp reduction in scrap collection in major exporting countries has resulted in higher prices.
Offers for ex-UK shredded scrap in containers have been heard at $270/mt CFR Pakistan recently. Some traders have reported about deals at this level, but “I would consider them as exceptions,” one of the importers from Pakistan said. The previous market price level was at $250/mt CFR, as SteelOrbis reported earlier. For the majority of customers, this is still the “true price” as many local steel mills have been forced to halt operations due to the lockdown. “We urge the government to immediately open the steel sector, especially all those mills that have labour colonies or residential arrangements for their workforce within the premises of their plants,” Wajid Bukhari, secretary general of the Pakistan Association of Large Steel Producers, said.
The big issue for the scrap market in Pakistan is the halt of logistics. Though ports are still open, other transportation has been stopped and as a result containers of scrap have been stuck at ports. “Even if the containers were transported to the plants, there is zero steel consumption due to the lockdown,” a source told SteelOrbis, adding that the lockdown has been extended until April 14.