Pakistan: Mills lift rebar offers as scrap prices surge by $70/t w-o-w

• Imported scrap offers to Pakistan rise by $70/t w-o-w
  
  
• Mills raise rebar offers by PKR 7,000-9,000/t ($39-50/t)
  
  
• PKR hits new low against $
  
  

Pakistan's domestic rebar offers have increased in recent adjustments made by the steel mills. Major mills like Amreli Steel, Mughal Steel, Agha Steel, Faizan Steel, etc raised rebar offers recently by PKR 7,000-9,000/t ($39-50/t), sources informed.

Fresh offers for G-60 rebar (10-12mm) stands at PKR 195,000- 200,500/t exw-Punjab ($1,080-1,111/t), including taxes. Rebar prices have crossed PKR 200,000/t due to severe supply chain disruptions, shortages, a sharp hike in the cost of inputs and utilities as attributed by the manufacturers in their messages to the construction sector.

"Meanwhile, mills will like to wait and watch whether the rates will be acceptable or not," said a reliable source.

Due to bad weather in January and sluggish demand, rebar prices in the northern area were slashed to PKR 184,000-187,000/t for a short period from PKR 194,000/t recorded two months back, SteelMint learnt.

Pakistan domestic prices

Imported scrap market quiet

The country's imported scrap prices have continued to head north, registering a new high on a d-o-d basis. Considering the high offers, scrap buyers and steelmakers have stepped back from booking fresh cargoes. Hence, no fresh deals were heard so far in this week.

Notably, imported scrap prices have jumped sharply around $100/t in the last two months.

Fresh offers for UK/EU-origin shredded are being quoted at $630-640/t CFR Qasim. No deals were concluded at these levels.

PKR hits new low against dollar

The national currency, PKR, continued to lose its value against the dollar. The currency has set a new record low at 179.2 in the currency exchange market, against the dollar.

Outlook: The current situation may prove to be unfavourable for steel as well as the construction industry as market sources believe scrap prices will go up further by $50-60/t in the near term. This may suppress steel demand.