- Pakistani buyers offering better realisations than India
- Ship-breaking sector active despite HKC uncertainties
Imported shredded scrap offers in Pakistan edged up by $3/t to $377-378/t CFR Qasim. Market sentiment remained largely unchanged, with demand remaining weak due to monsoon disruption and limited government focus on resolving tax issues in the real estate and construction sectors.
BigMint assessed European/UK-origin shredded scrap at $377/t CFR Qasim, an increase of $3/t w-o-w.
Market scenario
As per market insiders, EU-origin shredded might be workable at around $375-376/t, but many premium yards and suppliers are unwilling to offer at these levels. With Pakistan offering better realisations, sellers are reluctant to ship to India where buyer expectations remain capped at $365/t and even lower for similar grade material.
A Karachi-based trader noted that UK-origin shredded scrap offers are currently hovering around $375/t CFR, with a few deals recently concluded. However, some suppliers are now quoting as high as $385/t, and shredded offers have largely disappeared from the market. HMS sheared from UK/Europe is still available at around $350/t CFR.
The Europe-origin shredded scrap offer was last heard at $374-375/t CFR, with local scrap priced at PKR 136,000-140,000/t exw ($478-492/t). Billet was at PKR 200,000-202,000/t ($702-709/t) and rebar at PKR 235,000-238,000/t exw ($824-836/t). Fresh EU-origin shredded was quoted at $378-380/t, while UAE shredded stayed higher at $388-390/t CFR Qasim. HMS-PNS mix stood at $380-382/t, GI bundles at $371/t, and HMS 80:20 around $360/t. Market conditions remained steady, though demand showed limited strength.
Gadani holds firm amid HKC-related uncertainties
Pakistan’s ship recycling market remains cautiously active as recyclers continue to acquire dry bulk vessels while navigating the complexities of Hong Kong Convention (HKC) compliance procedures. Recent deals were supported by provisional DASR certifications granted to yards progressing toward HKC readiness.
Local ship scrap prices are holding firm above $400/LDT buoyed by strong domestic steel plate prices, which have surged to nearly $620/t—the highest in South Asia. However, regulatory ambiguity and delivery delays continue to create uncertainty.
Gadani Port recorded 5,964 LDT of vessel arrivals last week, a notable increase from zero in the previous week.
Outlook
Imported scrap prices in Pakistan are likely to remain range-bound in the near term, supported by firm offers from the EU and UAE. However, weak steel demand and unresolved tax concerns in the construction sector are expected to limit buying activity.
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