Despite another drop seen in import scrap offer prices this week, most Pakistani buyers have remained inactive in anticipation of a further correction in prices of materials for November deliveries. Besides, trade is still affected by floods and related problems, coupled with the currency devaluation and the liquidity issue.
Specifically, within the past week, import offers for ex-UK shredded scrap in containers to Pakistan have fallen to $445-450/mt CFR, down by $15/mt week on week. Meanwhile, no offers for ex-UAE HMS grade scrap have been reported this week, as “there are legal export issues, which are not resolved,” according to sources.
According to market insiders, most Pakistani buyers are not in a rush to sign new deals because most are waiting for a further downward correction. Besides, the impact of the floods on transportation remains an issue and Pakistani importers are unable to get and deliver to their plants the imported materials which have already arrived at ports. “We are faced with hurdles in LC payments by banks and the drastic rupee devaluation, while the road network has collapsed,” a Pakistani trader told SteelOrbis.