SteelMint learned in recent conversations with industry participants that imported scrap trades to Pakistan have slightly slowed down amid indications of correction in the global prices and lot of stricter regulations being imposed by the government on the industry.
SteelMint’s assessment for containerized Shredded 211 scrap from US, Europe and UK stands at USD 295-298/MT, CFR Qasim, lowering by around USD 5/MT against last week’s report, with minor trades being reported in the range recently.
As per prices maintained by SteelMint, Shredded scrap prices in Pakistan had fallen to new record low.
On the other demand for HMS has been witnessing negative sentiments in Pakistan amid stricter clearance rules by the customs.
Domestic market position remains more-or-less same – Surplus material availability & rainy season kept demand weak. The main reason is FBR tax enforcements. Most of the brokers, traders, retailers, stockist, private builders & contractors are not willing to make STRN (Sales Tax Registration Number) in addition to NTN / NIC number. Government is imposing these regulations without STRN steel manufacturers should charge 20% as Unregistered and those who have STRN number then charge standard 17% sales tax. Some of the manufacturers are selling undocumented trades to the retailers and traders in order to book their sales without issuing sales tax invoices.
Turkey imported scrap price assessment for HMS (80:20) is heard to have come down by USD 5 to around USD 270/MT, CFR Turkey
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