What's going on in the scrap market? What to expect in iron prices?

Pakistan's import scrap prices have increased further this week with a recent deal. The domestic market sentiment has also turned positive and the milder weather conditions are likely to support scrap import bookings. In addition, recent deals have encouraged Turkish suppliers to increase their bids.

In one assessment, import prices of UK/European shredded scrap stood at $550-555/ton CFR, up slightly by $5-10/tonne.

In a recent agreement, approximately 2,000 tons of UK shredded scrap was reserved on a $550/tonne CFR Qasim basis.

Around 6,000 tons of UK/EU shredded scrap in containers were booked at $545-550/tonne CFR Qasim last weekend.

UAE origin HMS 1,5 is offered at $525/ton CFR Qasim.

Import scrap prices rise in Turkey deals

Turkey's deep-sea ferrous scrap import prices rose sharply as fresh cargoes from Venezuela and Russia were tied up by Turkish mills. A Russian origin cargo containing 18,000 tons of HMS 1/2 (95:5) was booked at $493/ton CFR Turkey. A Venezuelan origin cargo deal was made by a Mediterranean producer and HMS 1/2 (80:20) was purchased at $483/mt CFR.

Pakistani rupee recovers

The Pakistani rupee remained range-bound against the dollar for the second week in a row. Currently, the Pakistani rupee is trading at 176.4. The main reason behind the rupee's recovery against the dollar was that the State Bank of Pakistan (Amendment) Act 2021 passed the Senate last week.

Rebar prices expected to increase

The import scrap market in Pakistan remained quiet for another week after mills sharply lowered their rebar offers due to low demand. "However, prices are expected to rise in the coming days due to the gradual warming of clear weather and cold weather from last week," a market source said. Domestic G-60 rebar is currently at PKR 186,000-187,000 exw ($1,059-1,065/t) including taxes in Punjab.

Pakistan scrap prices flat

Local scrap prices have held steady this week after falling sharply last week. High quality scrap prices (equivalent to shredded scrap) remain unchanged at PKR 120,500/t ($686/t) exy-Punjab.