- Mills cautious; thin bookings amid market uncertainty
- Demand expected to pick up post-Eid amid possible restocking
Imported shredded scrap offers from the UK/EU are currently quoted at $380-382/t CFR Port Qasim, while most Pakistani buyers are bidding lower at $376-378/t. Trading activity remains limited as demand for finished steel has slowed ahead of Eid al-Adha (6-10 June).
Market sources also reported shredded scrap offers in the range of $382-385/t CFR Qasim.
BigMint‘s assessment for European/UK-origin shredded scrap stood at $380/t CFR Qasim, a slight drop of $2/t w-o-w.
According to multiple mill-side sources, local scrap is trading at PKR 140,000/t ($496/t), billets at PKR 205,000/t ($726/t), and rebar at PKR 235,000/t ($832/t). On the import side, UAE-origin fabrication scrap was offered at $387/t for 500-1,000 t loads, while sheared HMS stood at $365/t with 21 free days. UAE-origin shredded was quoted at $390/t, and UK/EU-origin shredded at $380/t.
Mills noted that while offers are stable, bookings remain thin amid cautious sentiment ahead of Eid.
Key industry & policy updates
1. PALSP warns against tariff cuts
The Pakistan Association of Large Steel Producers (PALSP) warned that tariff cuts on finished/semi-finished steel could lead to mass closures, $1 billion (PKR 282.35 billion) in added imports, and job losses. With over 60% of units already shut, PALSP urged:
- Maintaining 50% import protection
- Postponing tariff cuts for one year
- Continuing sales tax exemption on local steel scrap
- Relief on energy and financial costs
2. PSMA seeks industry-friendly budget
Pakistan Steel Melters Association (PSMA) Chairman Mian Ahmad Hassan called for a business-friendly Budget 2025–26. He opposed tariff cuts and proposed:
- Broadening the tax base
- Fixed sales tax based on electricity consumption
- Stakeholder consultations for industrial growth
3. Govt finalises PKR 1.275 trillion loan for power sector
To reduce the PKR 2.3 trillion circular debt, the government has secured a Rs 1.275 trillion ($4.5 billion) loan:
- PKR 617bn ($2.2bn) fresh borrowing at 10.5–11% (KIBOR -0.2%)
- PKR 683bn ($2.4bn) to retire old loans; PER 569bn ($2bn) to clear IPP arrears
- To be repaid via 6-year Debt Service Surcharge (DSS) on power bills
- DSS cap removal via legislation; final approvals expected before Eid
Outlook: Scrap trading is expected to stay slow ahead of Eid al-Adha (6-10 June), with limited bookings and buyers resisting current offer levels. Post-Eid, demand may improve slightly if restocking picks up.
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