- Most mills running at 30-35% capacity; rebar demand remains weak
- Pre-winter restocking may stabilise prices, but buyers stay cautious
Pakistan’s imported scrap prices held steady w-o-w, with shredded material levels stood at $365-366/tonne (t) CFR Qasim, while UAE-origin scrap commanded a slight premium of around $15/t over UK/EU offers. The rebound in Turkiye triggered panic buying in Pakistan, with shredded being offered at $370-372/t. Some suppliers offered out of the market range of $365-370/t.
BigMint assessed European/UK-origin shredded at $366/t CFR Qasim, stable w-o-w.
According to market insiders and trading house sources, European Blue Steel recently sold a small parcel of 500 t at $375/t CFR Qasim, while shredded was offered at $368-372/t depending on the yard. UK-origin busheling hovered at around $370-375/t.
Middle East-origin HMS-PNS mix was last heard at $362-366/t, with UAE shredded commanding slightly higher levels at $375-380/t. Last weekend, a premium lot of 1,000 t of European shredded cleared at $370/t CFR Qasim. Offers from the same premium yards were at around $374-375/t, while other yards quoted $366-368/t. Traders held back on fresh bids this week, expecting some further softening in prices before committing to deals.
UK and European-origin shredded for Qasim was offered at $365/t from regular yards, while premium yards quoted $375/t. According to sources, no deals have been concluded at these levels so far, with buyers taking a cautious approach amid current market conditions.
Domestic market updates
On the steel side, rebar was traded at PKR 228,000-230,000/t ($806-813/t), billet at PKR 198,000-200,000/t ($700-707/t), and bala at PKR 186,000-188,000/t ($657-664/t).
As per a major Karachi-based steel mill source, demand for rebar has been softening over the past couple of weeks. Most mills are operating at a modest 30-35% of their capacity, and several producers have paused operations entirely, waiting for a clearer pick-up in buying activity before ramping up production again. The market is in a cautious phase, with buyers and sellers both holding back.
Ship recycling market: Gadani saw renewed activity this week after a quiet month. Bulkers such as RISING HARRIER (8,600 LDT) were sold at $445/light displacement tonne (LDT) and PUTERI KIRANA (8,082 LDT) at $390/LDT, including one arriving from Indonesia. Even a small handy vessel under 3,000 LDT was recycled, reflecting rising DASR certification costs and pressure on local yards.
Steel plate prices remained steady, and the PKR strengthened amid low 20% tariffs. However, delayed HKC compliance and ongoing infrastructure upgrades caused a tonnage backlog, with recyclers selectively negotiating most offerings. Gadani Port received 2,894 LDT this week, a sharp contrast to the previous week’s inactivity.
Outlook
Pre-winter restocking from early October could support prices, yet liquidity constraints and month-end payments keep buyers cautious. European sellers continue raising offers due to limited inflows and currency pressures.
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