The uncertainty as regards the prospects for the global steel market caused by the crash in iron ore prices and, in particular, weak sentiments in the Turkish scrap market has continued to keep Pakistani buyers away from active scrap bookings. Accordingly, Pakistani steelmakers have just been purchasing scrap in line with their needs, while closely watching developments in the global market. “The prices appear to be at the bottom but have not touched the market again yet. The question is whether these high prices can be sustained while iron ore has collapsed,” an official at a major Pakistan-based rebar mill commented.
This week, shredded 211 scrap of European origin in containers to Pakistan has been available at $523-527/mt CFR, down $7-8/mt compared to the levels fixed a week ago.
Prices of local scrap equivalent to shredded have hovered at PKR 112,500-113,000/mt ($671-674/mt) ex-warehouse Lahore. The official prices for 12-32 mm rebar of grade 60 in Pakistan are at PKR 175,000-177,500/mt ($1,044-1,059/mt) ex-works Lahore, unchanged week on week. The situation in the finished products segment is said to be stable now, with mills’ stocks being mostly at low levels, according to sources. “Stockists have some lower-priced products in hands as the prices in Pakistan really surged during the last month. However, by the last week of September, we expect stocks to be finished and we are about to increase prices further,” the representative of one mill stated.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 167.716