Although Pakistani scrap buyers have returned from the holidays, inquiries for import scrap have been increasing at a very slow pace. Meanwhile, offers for imported scrap have decreased slightly, though deal prices have remained at mainly the same levels reported two weeks ago.
Accordingly, during the past week, around 4,000-4,500 mt of ex-UK/EU shredded scrap in containers have been booked at $425-428/mt CFR Qasim, mainly at the same level as two weeks ago. At the same time, as of Wednesday, July 24, offers for ex-UK shredded scrap have been voiced at $422-425/mt CFR, compared to $425-430/mt CFR two week ago. Besides, offers for ex-US shredded scrap have been heard at $420-423/mt CFR. “No major improvement has been seen in spending plans by the government after the IMF bailout plan approval, so demand has remained at the same low level as before,” a market insider said.
At the same time, according to sources, local scrap prices remain more expensive as compared to import offers, though it is expected that market conditions may stabilize in the next month as demand for finished steel should improve. Offers for local scrap equivalent to shredded have been reported at PKR 155,000/mt ($556/mt) ex-warehouse, down by PKR 3,000/mt ($11/mt) over the past two weeks, while offers for local rebar 10-12 mm of grade 60 have settled at PKR 255,000-258,000/mt ($915-926/mt), down by PKR 2,000-3,000/mt ($7-11/mt).
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.56