Import scrap activity in Pakistan has remained muted due to continuous problems with opening letters of credit (LCs), coupled with slow demand and low-capacity utilization rates of local steel producers during Ramadan and the approaching Eid holiday. Thus, only some customers have continued to book material cautiously, while most importers have been holding back.
More specifically, after around 4,000 mt in total of shredded scrap in containers were bought at $465/mt CFR at the beginning of this week, new offers for shredded scrap have dropped to $460/mt CFR this week. “The Eid holiday is from April 20 to 25, and so there will be no business activities for two or three days before and after the Eid holiday,” a market insider told SteelOrbis.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have increased slightly to PKR 180,000/mt ($634/mt) ex-warehouse, up by PKR 5,000-10,000/mt ($18-35/mt) week on week. Furthermore, the tradable level for local 10-12mm rebar of grade 60 has been heard at PKR 270,000/mt ($952/mt) ex-works and below, while prices from mills have remained stable at high levels.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 283.76