Import scrap prices in Pakistan have continued to fluctuate within a narrow range this week, reflecting a market lacking a clear direction. Buying sentiment has remained weak, with mills only making small purchases to cover immediate needs due to concerns about demand and tight liquidity. At the same time, both local scrap and rebar prices have fallen sharply over the past two weeks, adding further pressure to sentiments in the import market.
More specifically, this week most offers for ex-EU/UK shredded scrap in containers have dropped to $355-360/mt CFR, versus $353-355/mt CFR two weeks ago. Besides, according to sources, customers’ bids have been voiced at $350/mt CFR.
Meanwhile, offers for ex-UAE HMS grade scrap have settled at $335-337/mt CFR, compared to $338-343/mt CFR two weeks ago. Offer prices for shredded scrap from the UAE have settled at around $360/mt CFR, the same as two weeks ago. “Sellers from the UAE have just resumed their work today after the holidays and are aiming for a $5/mt increase now, but we will see if it's accepted,” a Pakistani trader told SteelOrbis.
“With demand subdued and cash flow strained, mills are operating at below 40 percent capacity. Purchasing activity is restrained, with buyers avoiding major restocking and covering only immediate requirements,” a market insider told SteelOrbis.
At the same time, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 128,000-130,000/mt ($453-460/mt) ex-warehouse, down by PKR 7,000-10,000/mt ($25-35/mt) over the past two weeks. The tradable level for local 10-12 mm grade 60 rebar has declined by around PKR 4,000-7,000/mt ($14-25/mt) to PKR 218,000/mt ($772/mt) ex-works over the past two weeks.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 282.51