Pakistan: Imported scrap market remains muted

Pakistan’s ferrous scrap imported market remained mostly unchanged this week as trade sentiments were unsupportive. Consistently, finished steel market movement remained volatile with higher operational costs. SteelMint’s assessment for imported shredded scrap in containers is $490-500/t CFR, rising by $10/t w-o-w.
The ferrous imported scrap market is likely to remain quiet as steel producers look for clear price direction. Scrap buyers are cautious due to limited demand from end-users. Additionally, the government has added an electric charge, increasing the cost of production. Mills have already suspended their production due to low sentiments in steel market.
PKR appreciates against US dollar: A day after plummeting to an all-time low on 2 March at PKR 281-level, the Pakistan rupee recovered against the US dollar. The local currency closed at PKR 277.7 against the US dollar in the currency exchange market.

Domestic market slows down

Pakistan’s major mills kept their rebars prices low on the back of dull buying activities from downstream market. However, trade activities are happening with limited deals along with certain discounts and credit days resulting in minor downward corrections w-o-w.
Currently, deals for deformed grade 60 rebars (10-12 mm) concluded at PKR 290,000-295,000/t exw ($1,109-1,128/t) including taxes. However, some mills offered rebars at around PKR 298,000-300,000/t, including substantial discounts.
Fresh offers for local scrap (equivalent to shredded) are at PKR 200,000/t ($733/t) exy-Punjab, increasing material shortage.

NEPRA slaps additional surcharge on consumers: The additional surcharge of PKR 3.39/unit is to be applied in the billing of consumers from March to June 2023, to cover the markup charges of Power Holdings Limited (PHL) loans that are not covered through the current applicable financing cost (FC) surcharge of PKR 0.43/unit for the current financial year.
With the application of an additional surcharge, the total surcharge will peak at PKR 3.82/unit for four months (March–June).