Import scrap prices in Pakistan have continued to weaken over the past week given worsening sentiments due to low end-user demand. However, trade has remained in a lull due to liquidity issues, while local rebar producers have decided to revise their offer prices downwards amid extremely slow demand.
More specifically, offers for ex-UK shredded scrap in containers have settled at $480-485/mt CFR, down by $5-7/mt week on week. At the same time, no fresh deals have been reported so far, while most buyers expect to sign new contracts at below $480/mt CFR levels, acceding to sources.
Meanwhile, this week, most rebar manufacturers have decreased their local prices for 10-12 mm rebar of grade 60 by around PKR 10,000/mt and above ($36/mt) week on week to PKR 280,000-289,000/mt ($994-1,026/mt) ex-works, depending on the supplier. “Despite the extraordinary pressures on manufacturing costs due to skyrocketing utility charges, the rupee depreciation and raw material shortages, local producers have decreased their offers to attract buyers due to limited demand,” a market insider told SteelOrbis.
The prices for local scrap equivalent to shredded in Pakistan have dropped by PKR 5,000-10,000/mt ($18-36/mt) over the past week to PKR 190,000-195,000/mt ($675-692/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 281.61