Deal prices for shredded scrap in Pakistan have added another $25-30/mt compared to contracts reported at the end of last week, while new offers have already exceeded $615/mt CFR. Although finished steel sales in Pakistan have remained too weak to provide support for scrap price rises, inquiries for import scrap have been increasing in Pakistan on the back of the overall bullishness of foreign suppliers and growing interest in scrap at higher prices from Turkey.
Accordingly, after shredded 211 scrap of UK and European origin was sold at the end of last week at $585-590/mt CFR to the Pakistan market, up by $25/mt over the previous week, new deals have been reported at $615/mt CFR on Monday, March 7. Meanwhile, new offers are standing at $615-620/mt CFR. Meanwhile, offers for ex-UAE HMS I have increased to $590/mt CFR this week, $45/mt higher than at the beginning of last week.
“Pakistani mills are still reluctant to buy high-value inventories and to sell at lower than cost: however, demand for scrap is increasing amid the overall bullishness. Some market insiders believe offers for shredded scrap may increase to even $700/mt CFR,” an international trader told SteelOrbis.
Meanwhile, market insiders have been actively discussing an anticipated increase in local rebar prices in Pakistan. “People are discussing that local mills’ prices for 10-12 mm rebar of grade 60 will increase to PKR 191,500- 193,500/mt ($1,062-1,073/mt) ex-works, up by PKR 3,500-5,000/mt ($18-30/mt) week on week, but the situation will be clear by tonight when all mills will announce new prices,” a market insider stated.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 180.4