Scrap trading in Pakistan falters due to floods, rebar mills shut down production

Wednesday, 31 August 2022 17:52:20 (GMT+3)   |   Istanbul
       

The Pakistani scrap market has been depressed due to heavy rains and the floods in the country. Considering that one-third of Pakistan has been completely submerged by historic flooding, business activity has almost stopped, with 60 percent of rebar production shut down.

Market insiders based in Pakistan said there is a state of emergency for businesses due to the devastating flash floods which have washed away roads, homes and crops, leaving a trail of deadly havoc across the country. “We are in deep trouble. It is terrible and will dampen demand. Fortunately, in Karachi where a lot of steel companies are based the situation is still okay,” a market insider told SteelOrbis.  

As for the import scrap segment, trade activity has been close to zero, with the indicative offer levels for ex-UK/EU shredded scrap standing at $480-490/mt CFR, the same as last week. “The market will need weeks to recover from the flood situation, while the real impact to all the country will only be felt after a few months,” a Pakistan-based trader stated.

Meanwhile, Pakistani rebar steel mills have been forced to shut down their production facilities which have been affected by floods. In particular, according to its official announcement, one of the Pakistani rebar manufacturers, Amreli Steels, has announced its decision to shut down all its plants for twenty days owing to low demand for rebar in the country due to the unprecedented monsoon rains and flash floods. “No manufacturing will take place from August 31 to September 19,” the company officially stated.


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