Though there has been no visible improvement in demand for scrap in Pakistan, the price trend has started to reverse following the latest scrap bookings to Turkey at higher prices. As a result, only some customers resumed negotiations amid their concerns that prices will continue to move up further, while most importers have been holding back on slow demand.
According to sources, several deals for ex-UK/EU shredded scrap in containers for around 4,000-5,000 mt in total have been reported at $388-390/mt CFR level, versus deal prices at $375/mt CFR two weeks ago and up by $3-5/mt week on week. Meanwhile, most offers for ex-UK/EU shredded scrap have been voiced at $392-395/mt CFR, up by $8-10/mt over the past two weeks. “Foreign suppliers have been trying to sell shredded scrap at $395/mt CFR, but no one accepts above $390/mt CFR, some even insist on still $385/mt CFR,” an international trader told SteelOrbis.
Besides, offers from UAE for shredded scrap have been heard at $395-398/mt CFR Qasim, up by $10/mt over the past two weeks, though no deals have been reported so far.
“Sales were inconsistent, with buyers choosing to restock selectively as needed. However, buyers showed less interest in scrap imports due to narrow margins,” another trader said.
In the meantime, local prices for rebar have remained unchanged over the past two weeks, with offers for 10-12 mm rebar of grade 60 standing at PKR 245,000/mt ($882/mt) ex-works. Besides, offers for local scrap equivalent to shredded have remained at PKR 145,000/mt ($522/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 277.90