- Rebar prices under pressure as trading activity stays thin
- Post-Eid, mills restart slowly with unsold steel stocks
Imported shredded scrap offers from the UK/EU are currently quoted at $370-372 per tonne CFR Port Qasim, marking a sharp decline from last week’s price levels.
Trading activity remains subdued, with most market participants inactive due to the ongoing Eid holidays. Even after Eid, market activity is expected to remain slow, as most mills are anticipated to resume operations only from next week. This period of limited activity has contributed to the current price correction and muted demand.
As per a Karachi-based steel mill representative, the current market situation is quite challenging for us. Domestic scrap is fetching around PKR 140,000/t ($500/t), while billets are at PKR 205,000/t ($732/t), and rebar is at PKR 235,000/t ($839/t).
On the import front, the market is sluggish. Inquiries are few, and only a handful of mills are currently operational. Those who are running are now sitting on excess domestic steel stocks. The market is hoping for some positive momentum once more mills restart after the holidays.
As per a Punjab-based trader source, the market remains subdued in the aftermath of Eid. “I haven’t received any new offers from the UK, but the last quoted price for UK shredded scrap was at $375/t CFR Qasim. UAE-origin scrap is running about $5/t higher compared to UK levels,” he said.
“Today marks the first day after Eid, and everyone is cautiously monitoring developments, especially with the budget just around the corner. One offer of UK shredded scrap at $375/t CFR Qasim has been heard in the market, but overall, trading remains thin,” a source said.
Activity is slow across the board. Most market participants were waiting for the budget announcement for changes in taxes or policies.
Domestic scrap prices are currently ranging between PKR 138,000-140,000/t ($493-500/t). Rebar is quoted at PKR 238,000-240,000/t ($850-857/t), while billets are at PKR 200,000-204,000/t ($714-729/t). Bala prices are hovering between PKR 192,000-195,000/t ($686-696/t).
Pakistan policy update
To boost the construction sector, Pakistan has reduced withholding tax on property transactions to 2.5% for filers and 3.5% for non-filers. The annual rental value for self-occupied homes is now 2% (down from 5%). First-time buyers of homes up to 2,000 sq. ft. will benefit from new mortgage incentives and tax credits. A Shariah-compliant, four-year installment housing scheme is launching in Islamabad. These measures aim to make housing more affordable and transparent, supporting construction growth and broader market access.
At the same time, customs duties are being overhauled: additional customs and regulatory duties will be phased out within four to five years, customs duty slabs are being streamlined to 0%, 5%, 10%, and 15%, and the Fifth Schedule of the Customs Act will be abolished to reduce complexity and foster trade. These combined measures are expected to make housing more accessible, encourage construction activity, and support export-led economic growth by lowering import costs for key industries.
Outlook: The market is expected to pick up from next Monday, but for now, a slowdown is likely to persist over the next two days.
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