Trade in Pakistan’s import scrap market has remained rather slow in line with the previous week despite some improvement in expectations. High freight costs have been affecting trade, with alternative options for Pakistani buyers limited to the UAE, where freight costs are comparatively lower. In the meantime, although offer prices from European and UK sellers have showed a slight decline, most Pakistani customers have been refraining from purchases as finished steel sales remain quite depressed in the local market with no improvement seen over the past week.
Specifically, offers for ex-UK/EU shredded scrap in containers have been estimated at $425-430/mt CFR, against $428-430/mt CFR last week, though buyers have been insisting on levels below $425/mt CFR. Besides, offers for shredded scrap from the US have been voiced at $420-423/mt CFR, down by $5/mt week on week, while, according to sources, several deals have been signed at $420/mt CFR level this week.
Offers for ex-UAE HMS grade scrap have been reported at $393/mt CFR for August shipment, while offers for shredded scrap have been assessed at $430/mt CFR, down by $3-5/mt over the past week.
In the meantime, local rebar prices for 10-12 mm of grade 60 have remained at PKR 255,000/mt ($915/mt) ex-works, the same as last week. However, trade activity in the local finished steel market has remained muted amid the slowdown in construction activities and the rainfall across the country.
Offers for local scrap equivalent to shredded have been heard at PKR 152,000-155,000/mt ($542-556/mt) ex-warehouse, the same as last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.70