- Domestic rebar demand to improve before year-end
- Recovery capped by sluggish construction activity
Pakistan’s imported shredded scrap prices stood at $355-358/t CFR, roughly easing by around $2/t this week. BigMint’s assessment placed European/UK-origin shredded at $355/t CFR Qasim, down by $1/t w-o-w. Meanwhile, HMS remained stable, with price movements limited to a narrow range.
Overall, the steel market continued to experience bearish momentum, with prices falling sharply in recent times. This was despite steel sales being steady, with restocking expected ahead of the Christmas period. However, liquidity constraints persisted, and mills may continue scrap restocking through January-February to prepare for winter shutdowns.
A UAE-based trader revealed that sheared HMS (UAE-origin) was priced at $345/t CFR Qasim and shredded scrap at $365/t CFR Qasim. Traders noted fluctuating offers from the UAE, with HMS prices recently heard between $335-340/t, with oversupply at yards and limited domestic offtake.
Imported offers for EU shredded stood at $358-360/t, while UAE shredded was at $365-370/t, reflecting the market’s continued downward momentum.
Domestic market
A Karachi-based steelmaker highlighted that there has been a sharp correction in Pakistan’s steel market in the last couple of weeks, following a drop in imported shredded prices from $375/t to $355/t, as new cargoes entered the market. Domestic rebar prices fell to PKR 220,000-222,000/t ($778-785/t), billet to PKR 186,000-188,000/t ($658-665/t), bala to PKR 178,000-180,000/t ($630-637/t), and local scrap to PKR 129,000-132,000/t ($456-467/t).
However, Pakistan’s domestic market, particularly Lahore, remained sluggish, with a major steel mill reportedly cutting structure and channel prices by PKR 2,000/t ($7/t) amid weak demand. The government announced a PKR 10-12/unit ($0.3-0.4/unit) power discount on excess electricity usage, offering slight cost relief to mills.
Ship-breaking market struggles despite pricing lead
Pakistan maintained the highest subcontinental steel prices, with domestic plates about $230/t above India, but cheap Iranian imports have squeezed margins. The absence of HKC-certified yards, a weaker PKR, and limited vessel arrivals continued to weigh on sentiment, leaving the country’s pricing edge largely symbolic.
Outlook
Pakistan’s imported scrap and steel markets are likely to stay under pressure in the near term amid weak domestic demand, currency depreciation, and liquidity constraints. Mills may continue limited restocking to cover winter requirements; however, sluggish construction activity is expected to cap any price recovery.
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