Published on August 7, 2024

Overview:
Pakistan’s ferrous scrap import prices have experienced a slight decline of $2 per tonne week-on-week. This decrease comes despite increased bids from the UAE and the UK, reflecting the complex interplay of market forces.

Market Dynamics:

• Increased Bids: The UAE and the UK have shown heightened interest, with bids reaching $433-434/t. However, these bids have not been sufficient to prevent the overall decline in import prices
• Weather Impact: Recent intense rains have significantly disrupted activities, causing delays in customer and bill payments. This has added to the market’s challenges.
• Sales Prices: The average sales prices have fallen below cost, putting additional pressure on the market. Buyers have remained cautious, showing interest primarily around the $415–420/t levels.

Domestic Procurement:
Mills in Pakistan are increasingly turning to domestic procurement for their routine output. This shift is partly due to the cautious approach of buyers and the challenges in the import market.

Price Trends:

• Billet Prices: After a series of declines, domestic billet prices have risen to PKR 216,000–217,000/t ex-works.
• Rebar Prices: Rebar prices have increased to PKR 255,000–257,000/t ex-works.
• Domestic Scrap Prices: Domestic scrap prices have risen by PKR 1,000/t, now at PKR 153,000–154,000/t ex-yard.

Sales Activity:
Rebar prices have remained largely stable, but sales continue to be subdued with no week-on-week improvement. This indicates a cautious market sentiment and a slow recovery in demand.

Conclusion:
The slight decline in Pakistan’s imported ferrous scrap prices highlights the intricate balance of international bids, domestic procurement, and market disruptions. As mills adapt to these conditions, the market continues to navigate a challenging landscape.