- Rebar and billet prices ease further amid weak end-user demand
- Customs duty changes may boost raw material, semis’ imports
Imported shredded scrap offers from the UK/EU are currently quoted at $368-370/t CFR Port Qasim, marking a range-bound trend from last week’s price levels.
Trading activity remains subdued as most participants remain inactive following the recent Eid holidays. Even post-holiday, market momentum remains slow, with mills expected to resume operations only gradually by next week. This extended lull has contributed to weaker demand and a soft correction in prices.
BigMint‘s assessment for European/UK-origin shredded scrap stood at $370/t CFR Qasim, a slight drop of $1/t w-o-w.
Market commentary
“The imported scrap market is still inactive with almost no fresh offers. Overall sentiment remains muted, likely due to regional tensions stemming from the Iran conflict-being a neighbouring country, it’s impacting local confidence,” said a Karachi-based steel mill representative.
“Domestic prices remain under pressure — rebar is quoted at PKR 235,000-236,000/t ($830-833/t), billets at PKR 198,000-200,000/t ($699-706/t), and scrap is trading at around PKR 136,000-138,000/t ($480-487/t).”
“EU shredded is being offered at $370-372/t CFR Qasim, while UAE shredded stands higher at $376-378/t CFR,” said a Punjab-based trader. “Mill-side inquiries are very slow right now, with most mills running at just 30-35% capacity. Billet prices have dropped to PKR 198,000-200,000/t ($699-706/t), and rebar is quoted at PKR 235,000-236,000/t ($830-833), though real trades are happening at discounted rates of PKR 232,000-233,000/t ($820-823) exw.”
Another source added, “The market is slow after Eid, so many suppliers have lowered their offers.” UK shredded is at $370-375/t CFR, and we booked 1,000 t at $370/t– surcharge is being absorbed by the supplier. Local scrap is trading between PKR 136,000-140,000/t ($480-494/t), and rebar around PKR 235,000/t ($830/t).”
Outlook: EU/UK shredded scrap offers are seen stabilising with a slight rebound at $370-372/t CFR, and recent deals have settled within the $368-370/t CFR range. Pakistan’s FY’26 budget is likely to boost scrap trade sentiment, with 2% ACD removed on all steel scrap and customs duty on HMS cut to 0%. However, re-rollable scrap now faces a 5% duty, alongside stricter mutilation norms. Billet duties have been reportedly cut from 11% to 5% and if the duty revision holds, a shift towards billet imports over scrap could emerge, especially as buyers assess cost viability. That said, overall market movement may remain cautious until full clarity on RD/ACD structure is available–likely by end-June.
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