Following weeks of continuous declines in import scrap prices in Pakistan, this week new scrap offers have posted a slight increase since the rebound seen in Chinese prices has given a sign of hope to customers who were incurring heavy losses, while also tempting customers to re-enter the import scrap market.
Specifically, offers for ex-UK shredded scrap in containers have increased to $408-410/mt CFR, against $390-395/mt CFR last week, while a few deals have been reported at $400-405/mt CFR, up by $12/mt week on week. Besides, offers for ex-EU shredded scrap have been estimated at $400-405/mt CFR, up by $10/mt over the past week, following several deals signed at $398-400/mt CFR at the end of last week.
Furthermore, offers for ex-UAE shredded scrap have increased as well, to $405/mt CFR and above, up by $10/mt week on week.
In the meantime, the outlook is cautiously optimistic in Pakistan mainly given the recent rebound in Chinese prices and the approval of the International Monetary Fund (IMF) for the $7 billion loan aimed at helping Pakistan to stabilize its economy, though local finished steel demand has remained slow, while local producers are working at low capacity. “Given the challenging market conditions and the extremely slow demand, Amreli Steels, one of the largest long steel producers in Pakistan, has temporarily stopped operations at one of its sites, which is responsible for around 30 percent of its output,” a market insider told SteelOrbis.
In the local market, offers for local rebar of grade 60 10-12 mm have been voiced at PKR 245,000/mt ($883/mt) ex-works, against PKR 255,000/mt ($919/mt) ex-works last week, while offers for local scrap equivalent to shredded have been voiced at PKR 145,000-150,000/mt ($523-541/mt) ex-warehouse, mainly the same as last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 277.49