Demand for imported scrap remained lukewarm in the Pakistani market this past week with participants reporting deals between $555-565/t CFR Port Qasim, down from $560-565/t last week. A lack of buying interest from Indian and Bangladeshi buyers aided negotiations offsetting a weaker exchange rate.
Meanwhile offers for UAE-origin HMS 1&2 80:20 remained stable on the week at $520-525/t CFR Port Qasim. Deals for UAE-origin HMS 1&2 80:20 at $520/t CFR Port Karachi and $522/t CFR Port Qasim.
A deal for UAE Shredded was also heard between $565-567/t CFR Port Qasim last. Buyers have also been active in the domestic market which has supported prices for local scrap.
Tradable values for domestic Qainchi Tok were heard between Rs127,800-128,050/t on Wednesday, December 1st, dipping slightly on day, however, up by around Rs 2,000/t on week. Prices for Arat Tok have risen in tandem, with the tradable value on December 1st assessed at Rs 123,000-123,250/t Ex-Lahore.
Similarly, higher demolition offers exacerbated by limited vessel availability kept Gadani scrap prices firmed up.
Yards across Gadani at the beginning of the week were heard quoting scrap prices between Rs 130000-132000/t EXW, while offers in the Shershah market ranged between Rs 126500–127500/t EXW.
Momentum in Pakistan’s domestic scrap market remains stable amid demands for restocking and firmer finished steel prices in the country.
However, higher additional costs such as energy tariffs which have raised the production cost by almost 40 per cent according to industry sources will likely see buyers cautiously holding out on imported scrap offers for suppliers to negotiate larger discounts.