- Domestic scrap availability remains tight
- Rebar prices to remain rangebound
In Pakistan, imported shredded scrap from Europe was offered at $388-392/t CFR last week, with moderate trades heard concluded under $385-390/t levels. By the weekend, offers dropped further to $382-384/t amid slow buying interest.
As per market sources, post-Eid market activity is yet to show expected recovery.
BigMint‘s assessment for European/UK-origin shredded scrap stood at $382/tonne (t) CFR Qasim, down by $10/t w-o-w.
Scrap availability in the market remains tight, while weak demand continues to pressure finished steel prices. Semi-finished products faced steeper declines due to uncertainty and sluggish sales.
Market comments
“Imported scrap offers are slipping as the Turkish market takes a major hit – latest offers are around $384/t,” said a Karachi-based mill owner.
“We do expect further softening globally, but there is still a chance that Turkiye might rebound. That said, in the current conditions, it is tough to treat Turkiye as the benchmark or regional price driver.”
“Weak demand is the primary reason for the drop in rebar prices. With mills operating at just 30% capacity, there is no incentive to pre-stock material right now,” he added.
“A major revision usually starts with one big mill, and once that happens, the rest tend to follow,” said a representative from a Sindh-based mill. “Currently, top mills are still holding their offers on the higher side.”
A mill official commented, “Despite a recent reduction in electricity tariffs, steel mills have not seen effective implementation so far, limiting cost relief.”
Domestic scrap is trading at PKR 138,000-140,000/t ($499-$504/t). Rebar prices in the market are hovering at PKR 235,000-240,000/t ($844-$864/t), billets at PKR 204,000-206,000/t ($748-$758/t), and bala at PKR 188,000-192,000/t ($690-$719/t).
“We recently booked 500 t of PNS from the UK at $380-385/t CFR,” shared a Karachi-based mill source, noting that local scrap prices are currently ranging between PKR 140,000-143,000/t ($499-510/t).
“Rebar is trading higher in our region at PKR 245,000-250,000/t ($872-891/t), but overall market activity remains slow,” he added, pointing to limited demand and cautious buying sentiment.
“In Sindh, Amreli Steel holds the highest rebar offer at PKR 250,000-255,000/t ($891-909/t), followed by Naveena at PKR 244,000-245,000/t ($870-874/t),” said a trade participant.
“In Punjab, Moiz Steel leads at PKR 238,000-240,000/t ($848-855/t), with offers from Sheikhoo are at PKR 234,000-235,000/t ($834-837/t), Mughal at PKR 232,000-234,000/t ($827-834/t), Hunza at PKR 232,000-233,000/t ($827-831/t), and FF Steel at PKR 231,000-232,000/t ($823-827/t). Demand remains dull post-Eid,” he added.
Outlook: Market sentiment in Pakistan is expected to stay under pressure in the near term with some correction in global scrap offers, weak demand, cautious post-Eid buying, and uncertainty around finished steel consumption. Mills are likely to keep operations limited unless demand improves. Rebar prices are expected to remain rangebound but will be under pressure until sales pick up.
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