Pakistan based steel mills have stopped making fresh purchases of imported scrap owing to sharp fall in local currency against USD. Notably Pakistani rupee has depreciated to over 3 years low to at 108 per USD , falling over 4 percent in a day.
Last offers for shredded scrap in containers were heard at around USD 310-315/MT CFR Pakistan and bulk offers at around USD 310-312/MT CFR. HMS 80/20 offers were reported at USD 295-300/MT CFR and HMS 1 from Middle East at USD 300-305/MT CFR Pakistan.
” Pakistan mills are not booking fresh cargoes as currency has depreciated about 4 percent in last couple of days. Last trade was reported at USD 300/MT CFR Pakistan for HMS 1 from UAE and Kuwait.” said a scrap trader based in Dubai.
Pakistan is turning out to be a major importer of scrap as existing mills are coming up with more capacities.There is no official data on imports , but industry participants expect imports not to be less than 3 MnT pa.
“Pakistani currency has depreciated over political instability , however it seems short lived and we expect it to recover soon. Fundamentally demand is strong and consumption of steel will increase” said a steel mill based in Pakistan.
Pakistan mills have recently shifted to bulk imports of scrap over containers due to freight difference in bulk and containers. Two bulk vessels carrying total about 50,000 MT have been reported at Pakistan port in last one week.
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