Pakistan: Imported scrap offers recover, but trade muted

Imported scrap prices in Pakistan continued to rebound amid rising offers to Turkiye even as the latter was silent. However, trade in Pakistan remained subdued. Market activities remained absent on the back of negative sentiments and sluggish finished steel demand. Industry experts believe that the market situation is difficult to predict as October has already started, and trade activities would be at the peak. But the situation is totally out of control. Meanwhile, major buyers have suspended their production.

“October has started. After a month, fog and winter weather will again slow down market activities,” said a market source.

Fresh offers and deals

• Fresh offers for UK-origin shredded scrap in containers are at $455-460/tonne (t) CFR. Prices are slightly up by around $20/t w-o-w. However, deals are happening as per bid prices, SteelMint learnt.

A couple of deals were heard to have been concluded at $440-448/t CFR basis.

Domestic market remains unsupportive

• Pakistani rupee gains further against USD: Despite thePakistani rupee (PKR) continuing to gain value against the US dollar for the third successive week, buyers and steel mills remained less active in the market. The PKR is now trading at 225.1 against the dollar, up by PKR 10 w-o-w.
• Rebar market remains dull: Domestic finished steel market continued to remain sluggish, due to dull demand. In addition, increased production costs, LC restrictions, and higher power tariffs kept steelmakers cautious. However, offers for G-60 rebar (10-12mm) are at PKR 215,000-216,000/t exw-Punjab, including taxes, while the tradable value is lower by PKR 3,000-4,000/t ($13-17/t) exw, depending on payment terms.
• Nepra asks govt to end taxes on electricity: The National Electric Power Regulatory Authority (Nepra) has asked the government to end taxes on electricity and take steps to minimize high losses, low recoveries, and centralized control of power companies to improve governance.

Outlook: Imported scrap prices are likely to come down as buyers are showing less interest in booking any fresh material at these levels. Few market experts believe trade activities may improve in the near term.