Trade activity in Pakistan’s import scrap market has slowed down this week, with most Pakistani steelmakers adopting a rather cautious approach in terms of purchases, while offers from the main suppliers have increased slightly. At the same time, increased freight rates from Europe, coupled with a smaller number of inquiries for ex-UAE scrap due to increased customs enforcement on export cargoes, have been affecting business activity.
Import offers for containerized shredded scrap from the UK and Europe have been voiced at $428-430/mt CFR for August shipment, versus $425/mt CFR last week. Besides, offers for ex-UAE shredded scrap have been reported at around $432-435/mt CFR, up by $3-5/mt week on week. However, according to sources, most buyers’ bids for shredded scrap have remained at around $420/mt CFR level. “Around one week ago several bookings for ex-UK and ex-Canada shredded scrap for around 4,000-5,000 mt in total were reported to have been signed at $410-421/mt CFR Qasim, and, even though current offers are higher, most buyers still hope to make new deals at the same level,” a Pakistani trader said.
In the meantime, trade activity in the local finished steel market has remained muted amid a slowdown in construction activities and rainfall across the country. Official offers from Pakistani mills for 10-12 mm rebar of grade 60 have been voiced at PKR 255,000-258,000/mt ($915-926/mt) ex-works, the same as last week, while the tradable price level has been estimated at PKR 245,000-250,000/mt ($879-897/mt) ex-works.
Offers for local scrap equivalent to shredded have been heard at PKR 152,000-155,000/mt ($545-556/mt) ex-warehouse, down by PKR 3,000/mt ($11/mt) on the higher end of the range week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.72