The continued decline in the domestic and import scrap prices has triggered higher demand from Pakistani steel mills this week. Accordingly, some of them have decided to replenish their stocks, though most market participants remain convinced that prices will continue to fall further and, consequently, have taken a wait-and-see position.
SteelOrbis has learned that this week Pakistani steel mills booked up to 25,000 mt in total of shredded 211 scrap of European origin in containers at $440/mt CFR Qasim, $18/mt lower than prices fixed in small trades a week ago. “Although a further decline in prices is expected, the current level is already a good price on average. A lot was booked at $490-510/mt CFR previously,” a Pakistan-based trader commented. “The local market has overreacted, with current prices having reached $405-410/mt for the equivalent to shredded scrap. Hence, we are waiting for a further reduction in import offers,” a representative of Pakistani steel mills stated.