Imported scrap offers into Pakistan have continued to rise in response to the hike in global scrap prices. However, buyers showed less interest in the higher offers. Meanwhile, some deals were heard to have been concluded at $415-420/t levels.
Offers for UK/Europe-origin shredded scrap in containers stand at $425-430/t CFR, increasing sharply by $10-15/t on a weekly basis.
Pakistani scrap markets have been mostly silent amid the gloomy domestic market sentiments. The downstream sector is yet to improve, which keeps scrap buyers sidelined. Additionally, steelmakers are under pressure to sell their finished steel at lower prices to maintain the cash flow.
Prices have risen post-hike in Turkish prices in the recently heard deal of US-origin. An Aegean region-based mill booked a bulk scrap cargo comprising HMS (80:20) at $360/t CFR Turkiye, SteelMint learnt from sources. The cargo was heard to be booked for December shipment. Prices have risen by about $20/t in the last two weeks.
Domestic market maintains sluggishness
- PKR largely stable: Pakistan’s national currency, the rupee, remained stable this week against the US dollar. As per the State Bank of Pakistan (SBP), the rupee settled at 224.6 against the dollar.
- Liquidity issue: The steel market turned dull over the last ten days as it was the due bills payment period, which causes liquidity issues. Mills have lowered their steel prices to get maximum profit and keep their cash flow smooth.
- Mills keep rebar prices firm: Pakistan’s major steel companies are under pressure to sell their finished steel at lower levels. Offers for G60 rebars are at PKR 205,000-210,000/t exw-Punjab ($924-946/t). However, tradeable prices are at PKR 200,000-205,000/t ($901-924/t) exw.
- Local scrap prices up further: Local scrap (equivalent to shredded scrap) prices also rose to PKR 125,000-130,000/t, exy-Punjab, up by PKR 5,000/t w-o-w. Market participants are expecting further hikes in the coming days due to material scarcity.
Pakistan domestic prices
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