- Mills tread cautiously as scrap demand stays low
- Regulatory delays add pressure on steel sector
Pakistan’s imported shredded scrap prices slipped by $3/t w-o-w, settling at $380/t CFR Qasim. The slight correction encouraged a few mills to resume bookings, though overall demand remained sluggish amid ongoing monsoon-related disruptions that continued to affect mill operations.
BigMint assessed European/UK-origin shredded scrap at $380/t CFR Qasim, down from last week’s $383/t.
A trader noted, “Local scrap prices in Pakistan remain stable, with mills attempting to push levels down, though strong resistance from sellers continues to hold the market firm.”
Recent deals
- 1,500 t shredded scrap from premium Swedish yard at $386/t CFR Qasim
- 500 t shredded scrap from the UK at $380/t CFR Qasim
- 1,000 t UK-origin PNS at $376/t CFR Qasim
- 2,000 t UK-origin shredded sold at $380/t CFR Qasim
- 500 t German shredded booked at $379/t CFR Qasim
- 500 t UAE-origin HMS 80:20 booked at $375/t CFR Qasim
Market updates
As per market participant, with imported shredded offers Shredded workable levels were around $376-378/t CFR Qasim, while offers held higher at $380-83/t. Some selective buying was reported for UAE-origin cargo at $390/t, though demand remained thin. Dubai-origin HMS was workable at $360/t, but only in small volumes.
A trader commented, “Activity in the imported scrap market stayed slow, with most mills holding back on large-scale purchases. Selective trades were recorded, mostly for shredded and HMS from Europe and the UAE.
Dometic market updates
The domestic market remained steady, though sluggish rebar demand capped price gains and squeezed mill margins.
- Local scrap: PKR 138,000-142,000/t ($487-501/t)
- CC Bala: PKR 186,000-190,000/t ($656-670/t)
- Billet: PKR 200,000-202,000/t ($705-712/t)
- Rebar: PKR 235,000-238,000/t ( $829-839/t)
Major mills stayed largely inactive, with only a handful actively purchasing shredded scrap. Others limited buying to small UAE-origin shipments.
Additionally, Pakistan’s steel sector faced regulatory updates this week, with the Federal Board of Revenue (FBR) extending the deadline for mandatory digital invoices. All industries, including steel, must now issue and upload invoices instantly on the government’s web portal.
Outlook
With rebar sales sluggish and margins under pressure, demand for imported scrap is expected to remain subdued in the near term. Shredded levels are anticipated to stay in the $376-378/t CFR Qasim range, though a meaningful recovery will hinge on an improvement in finished steel demand.
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