Little has changed in Pakistan’s import scrap market in the past week, with sources attributing the lull in activity to the Eid holiday. Besides, although the market has officially returned from the holiday, business activity has been showing no signs of life so far. Activity is expected to pick up next week, though market sources have an opposite outlook for the price trend, expecting declines given the bearishness mounting in Turkey.
The indicative offers for shredded 211 scrap of UK and European origin in containers in Pakistan have settled at $455-460/mt CFR, down by $5-10/mt over the past week.
“Considering that the international scrap market is showing a downward trend, the majority expect import scrap prices to go down in Pakistan. Besides, sentiments remain negative for local steel manufacturers given the unstable currency exchange rate, higher electricity tariffs, and the still slow construction recovery,” a Pakistani trader told SteelOrbis.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have remained at PKR 180,000/mt ($643/mt) ex-warehouse. The tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 270,000/mt ($965/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 279.86