- Turkiye price uptick has no impact on Pakistan market
- Mills focusing on cutting costs amid weak sentiments
The Pakistan steel and scrap market remains slow, with weak demand, cash flow constraints, and subdued finished steel sales. Punjab, in particular, is facing challenges, and overall market activity is dead slow. Many suppliers remain reluctant, as South Asian buyers have been rejecting shredded scrap offers above $365/t.
Recent trades include the purchase of 5,000 t of shredded scrap from Sweden at $360-363/t CFR Qasim with some buyers are attempting to push levels down to $355/t. UK/EU-origin shredded scrap is trading at $360-362/t CFR Port Qasim, while UAE-origin offers are at $380/t.
BigMint assessed European/UK-origin shredded at $366/t CFR Qasim, down by $4/t w-o-w.
Market comments
A Karachi-based mill source noted that Pakistan’s steel market faces quiet amid a severe cash flow crunch. Despite Turkiye’s continued price uptick, Pakistan did not follow the trend. Rebar demand is weak, with prices stable in recent days. Limited liquidity has pushed credit terms from the usual 30-60 days to as long as 90 days. Recent strike activity has further disrupted logistics, weakening sentiment and reducing buying interest.
A major trading house reported shredded scrap levels around $360-362/t. Mills are monitoring short-sea freight, expected to remain stable this week. Domestic scrap is quoted at PKR 136,000-138,000/t ($480-487/t), rebar at PKR 232,000-233,000/t ($820-823/t), and billet at PKR 200,000-201,000/t ($707-711/t).
Market liquidity did not favour finished steel sellers, who are adopting a low-operations approach to cut costs and limit spending.
Local scrap is being offered at PKR 135,000-140,000/t exw ($477-495/t), with rebar quoted at PKR 230,000-232,000/t ($812-819/t), billet at PKR 196,000-198,000/t ($692-699/t), and bala at PKR 185,000-188,000/t ($653-664/t).
Activity at Gadani remains minimal, with only a few vessels sold. The market is stagnant, as no HKC-accredited yards are operational. Limited DASR approvals, inspection delays, ongoing conflicts, economic uncertainty, and weak demand have kept buyers cautious. Scarce arrivals, PKR depreciation, and rising tariffs continue to weigh on steel prices. Pakistan recorded no vessel arrivals in September, down sharply from 14,057 LDT in August, leaving Gadani mostly inactive.
Outlook
The market will likely remain sluggish with weak demand and limited cash flow. Recovery depends on improved liquidity.
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