Following a slight decrease in import offers for shredded scrap in Pakistan at the beginning of last week, most foreign suppliers decided to go higher securing some volumes at higher prices at the end of last week. This week, however, although another rise has been reported in import scrap prices, most Pakistani buyers have been in wait-and see mode given the political instability in the country.
More specifically, according to sources, at least 10,000 mt in total of ex-UK/EU shredded scrap was booked by Pakistani buyers at $435-440/mt CFR at the end of last week. This means deal prices increased by around $5-10/mt since the beginning of last week. This week, however, most ex-UK shredded scrap offers have been voiced at $440/mt CFR and some at even $445/mt CFR. However, despite further increase, most Pakistani buyers have been inactive in terms of new purchases.
“The current political instability is affecting business a lot. Last week, Pakistan's supreme court said former prime minister Imran Khan's arrest was illegal and ordered his release. Also, most government-funded projects are still on hold. But trade may recover as local mills are reporting very limited inventories,” a market insider told SteelOrbis.
Meanwhile, offers for local scrap equivalent to shredded have been voiced at PKR 187,000-190,000/mt ($662-673/mt) ex-warehouse, versus PKR 180,000/mt ($637/mt) ex-warehouse two weeks ago. Besides, the tradable prices for local 10-12mm rebar of grade 60 have settled at PKR 260,000/mt ($921/mt) ex-works, the same as last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 282.38