- Pakistan’s scrap market sees early signs of recovery
- Fresh buying interest seen for UAE, European cargoes
Pakistan’s imported shredded scrap prices remained range-bound w-o-w at $383/t CFR Qasim this week. The market showed early signs of recovery following the federal budget, which eased restrictions on scrap imports while increasing duties on finished steel imports from the Gulf Cooperation Council.
This policy shift encouraged mills to resume bookings, though, overall, demand was sluggish amid monsoon-related disruptions that continued to affect mill operations.
BigMint assessed European/UK-origin shredded scrap at $383/t CFR Qasim, an increase of $1/t w-o-w.
Fresh buying interest was noted for UAE-origin cargoes, aided by logistical advantages, while sizeable bookings were also made from Europe and the US. Once these shipments arrive, pressure on UAE-origin supply is likely to ease.
Additionally, insiders pointed to a $15-20/t gap between Indian and Pakistani buying levels.
Recent deals
- 1,000 t of UK/EU shredded were bought at $381/t CFR Qasim.
Market updates
As per market chatter, Pakistani mills did some restocking, with imported shredded offers at around $385-387/t and UAE-origin material at $395-400/t, though no deals were confirmed at these levels.
A UAE-based trader stated, “Sentiment is unchanged from last week. Demand in Pakistan remains weak due to flooding and heavy rains. Indian buyers are still at $360/t, but with Pakistan restocking, suppliers are pushing for higher realisation.”
A market participant noted, “Some re-rollers reported billet inquiries from Iran, while mill operations continue at only 30-35% of their maximum capacity. Lack of infrastructure spending and flooding in several regions are further halting activities.”
Outlook
Imported shredded scrap prices in Pakistan are expected to rise to around $385-390/t CFR, with demand revival hinging on an improvement in weather and infrastructure activity.
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