- Scrap imports rise sharply by 66% m-o-m in Jul
- Duty relief, lower global prices boost volumes
Pakistan’s ferrous scrap imports rose by 14% to 1.82 million tonnes (mnt) during the first seven months of CY’25 (7MCY’25) compared to 1.59 mnt in the same period of CY’24.
In July alone, imports reached 311,888 tonnes (t), reflecting a 66% increase from 188,417 t in June. On a y-o-y basis, July imports were up 46% from 213,449 t recorded in July 2024.
Despite weak domestic steel demand, Pakistan’s scrap imports increased, as sellers diverted shipments from other markets to Pakistan, as importers paid slightly higher prices, offering exporters better margins.
Pakistan’s ferrous scrap imports increased by 9% y-o-y in H1CY’25 to 1.51 mnt compared to 1.38 mnt in H1CY’24.
Crude steel production: Pakistan’s crude steel production in H1CY’25 declined to 2.18 mnt from 2.7 mnt in the same period of CY’24. Despite lower local production, imports increased, reflecting the industry’s effort to meet demand and maintain supply for downstream steel consumers.
Factors supporting imports
Duty, policy relief: Pakistan’s FY’26 budget granted relief to steelmakers by exempting HMS, shredded, and bundled scrap from customs duty. The 3% HMS duty and 2% ACD were removed, reducing procurement costs.
Price competitiveness: Global shredded scrap prices declined in 2025 compared to 2024, making imports more attractive for Pakistani buyers.
Average scrap prices
Pakistan: The average price of UK-origin shredded scrap in 7MCY’25 stood at $381/t, down $46/t from $427/t in 7MCY’24.
India: The average price of UK-origin shredded scrap was at $373/t in 7MCY’25, reflecting a steeper drop of $45/t compared to $417/t in 7MCY’24.
Additional updates
Dost Steels Limited signed a PKR 2.08 billion loan restructuring deal and raised PKR 4.45 billion to restart rebar production with 350,000 t capacity, though no timeline has been given.
Outlook
Pakistan’s ferrous scrap imports are expected to stay strong in H2CY’25, driven by duty relief, and mills — especially rebar producers — will continue active buying to secure cost advantages over selective Indian buyers.
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