Despite a slight drop in import scrap offer prices, most Pakistani buyers have remained inactive this week amid still slow domestic demand during Ramadan, coupled with continuing letter of credit (LC) issues and the political instability in the country. Thus, only occasional deals have been reported in the market.
More specifically, offers for ex-UK shredded 211 scrap in containers have been voiced at $460-470/mt CFR, versus $470-475/mt CFR last week. According to sources, most local buyers have continued to refrain from import scrap purchases, with only occasional deals reported at $455-460/mt CFR this week. Furthermore, rarely heard offers for ex-UAE HMS grade offers have been reported in Pakistan at around $450/mt CFR Qasim this week. “Construction demand is very slow during Ramadan. some Pakistani producers just prefer to book the more available domestic scrap,” a market insider said.
“The instability of the national currency, higher production costs, electricity charges and the impossibility of opening LCs,, all these factors still affect the market. Maybe we will see some improvement in demand after the Eid holiday,” another source told SteelOrbis.
Notably, this week, the Pakistani rupee has touched a record low of 287 to the US dollar from 255 to the dollar in January given the ongoing political and economic uncertainty in the country and the delay in the revival of the IMF loan program.
Meanwhile, Pakistani producers have maintained high offers for rebar of grade 60, 10-12 mm, at above PKR 280,000/mt ($973/mt) ex-works, though the workable prices have been assessed by some local buyers at around PKR 270,000/mt ($939/mt) ex-works and above.
Local scrap equivalent to shredded in Pakistan has been offered at around PKR 174,500 ($605/mt) ex-warehouse in Lahore, down by PKR 10,000/mt ($35/mt) week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 287.63