Imported scrap prices into Pakistan have remained range-bound against the closing of last week after a few mills restocked cargoes. With a majority of scrap suppliers still in the holiday mood, the sentiments remained bearish, resulting in lacklustre trade.
“Stable inquiries and limited offers from suppliers kept the market bearish,” said a market source.
SteelMint’s assessment for shredded scrap imports into Pakistan stands at $535-540/tonne (t) CFR, up by $5/t w-o-w. Limited trade was seen after prices improved last week with mills returning to the market from holidays.
- Around 1,000 t of UK/EU-origin shredded scrap in containers was booked yesterday at $535/t CFR Port Qasim.
- UAE-origin HMS 1 has been quoted at $500-505/t CFR basis, witnessing a sharp hike of around $20/t w-o-w.
“The market is very slow because of the New Year holidays. but it may gain momentum next week,” said another market source.
The Pakistani rupee (PKR) gained value after a continued downtrend for the last couple of weeks. Currently, the Pakistani rupee is trading at 176.97 levels against the dollar compared to 178.5 recorded last week.
- Finished steel market dull: The finished steel market in the northern region remained closed due to heavy rains and snowfall. Domestic rebar offers for G-60 (10-12mm) grade are at PKR 188,000-190,000/t exw ($1,062-1,073/t), including taxes. However, few deals are even happening at lower levels of PKR 185,000-187,000/t exw ($1,045-1,056/t).
- Local scrap prices up: Local scrap prices have moved up on supply shortage. Prices have increased sharply by PKR 4,500/t ($25/t) to PKR 122,500/t levels ($692/t). The preference to the domestic material has increased due to limited offers from the overseas markets.
Pakistan domestic prices
Outlook: The market awaits the mini-budget announcement, expected in Jan’22. In addition, general sales tax is likely to be increased to 17% from 14% currently.
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