- European shredded scrap to hover at $350-355/t CFR in short term
- Gadani ship-breaking market softens as cheap Iranian scrap weighs on offers
Imported scrap offers eased by $4-5/t this week, with UK/EU shredded heard at $356-360/t CFR and lower-grade UK-origin material tradable below $358/t. HMS was reported at around $340-345/t, with some buying interest at $355/t CFR Qasim.
Some suppliers from Europe offered shredded scrap at around $360/t CFR, while Middle East HMS/PNS stood at $352-355/t CFR. Rebar and scrap prices remained under pressure amid a persistent liquidity crunch and sluggish recovery outlook, while Pakistan’s domestic scrap prices edged up due to limited collection rates.
BigMint assessed European/UK-origin shredded at $356/t CFR Qasim, down by $5/t w-o-w.
Market participants described the current scene as “completely dead”, with sluggish demand across regions and limited material availability at yards. Despite this typically being a busy season, trading activity remains unusually subdued.
Imported shredded scrap offers came under pressure as buying interest from South Asia remained limited. Ideal trade levels hovered around $358-360/t CFR, though mills’ tight margins kept their workable range below $355/t.
As per market insiders, Pakistan’s scrap imports have risen sharply — up 25-30% since July — as the country remained a steady buyer for containerised scrap amid fluctuating participation from India and Bangladesh.
As per a UAE-based trader source, UK-origin shredded scrap attracted bids at $350-355/t CFR, while European suppliers held firm near $360/t. From the UAE, offers were scarce, with some exporters quoting $375-380/t for shredded and $355-360/t CFR for HMS/PNS mix.
Domestic market
A local trader described the market as extremely quiet, with rebar prices in Punjab and KPK hovering around PKR 230,000-231,000/t ($812-816/t) and slightly higher in Sindh at PKR 233,000-234,000/t ($823-827/t).
Billet prices stood at PKR 192,000-196,000/t ($679-693/t), while Bala billet was around PKR 180,000-182,000/t ($636-643/t). Local scrap traded at PKR 138,000-140,000/t ($488-495/t), reflecting continued weakness in demand and limited yard activity.
Buyers shift to larger dry vessels as sentiment weakens
The Gadani ship recycling market softened as cheap Iranian scrap weighed on offers and sentiment. Prices stayed just above $400/LDT, with buyers preferring larger dry vessels amid DASR certification delays and HKC yard upgrades, which made smaller units less viable. Inflation nearly doubled in September, while plate prices held firm at $614/t. A 6,900 LDT vessel was reportedly sold at $412.5/LDT, though the vessel’s origin remains unspecified.
Outlook: Pakistan’s imported scrap market is likely to remain rangebound in the near term as liquidity constraints and subdued steel demand persist. Buying activity could see a mild recovery if domestic rebar sales improve after the festive season. European shredded scrap is expected to trade around $350-355/t CFR in the short run, with limited upside amid cautious mill buying.
Leave a Reply