The start of 2022 has seen a bullish trend in non-ferrous prices; the record numbers achieved on the LME and Comex have contributed to more challenging market dynamics.
In Pakistan, most non-ferrous processing leads to the production of secondary ingots, essentially copper and aluminium. Chinese discounts have increased owing to the really high and volatile LME values, leading to uncertainty among Pakistan’s recyclers. There has also been a downtrend in domestic demand for metals in Pakistan where, given the increasing raw material prices, demand for consumer goods has declined.
Owing to the ongoing war in Ukraine, commodity prices are expected to remain on the higher side amid increasing uncertainty around the world.
At the same time, there are continuing problems as a result of constant shipment delays and shortages of equipment, along with substantial increases in freight rates.