New offers for shredded scrap in Pakistan have posted another increase this week, though business activity has remained muted due to the national holidays in the country. However, market insiders believe that the recent gain in the national currency may support fresh bookings.
Specifically, import offers of ex-UK/EU shredded scrap in containers to Pakistan have settled at $480-490/mt CFR, compared to $460-465/mt CFR last week. According to market insiders, several deals of around 2,000 mt were signed at $475/mt CFR at the end of last week, before the Muharram Ashura holidays started, while new deals are expected to be signed at not lower than $480/mt CFR.
Market insiders expect import scrap trades to increase in the short run, considering the recent gain in the national currency. In particular, the Pakistani rupee (PKR) gained around six percent against the US dollar in early August, the strongest increase in over five years, after it had plunged to a record low towards the end of July. On August 10, the Pakistani rupee is standing at PKR 224.80 against the US dollar.