- Tight cash flow restricting fresh procurements
- Distress cargoes available, but demand subdued
EU shredded held steady at $353-356/t while UAE-origin HMS 80:20 was assessed at $335-337/t. A few distress cargoes are available but buyers remain cautious due to soft downstream demand, which has kept winter restocking slower than expected.
Ferrous scrap import volumes have increased in October, even as market sentiment stays weak. If procurement does not normalise in the coming weeks, tight inventory tightness and supply gaps could emerge by January, potentially adding short-term support to prices.
As per market insiders, Pakistani buyers remain largely on the sidelines due to weak demand and tight liquidity, with most activity shifting toward fabrication imports from the UAE.
In the domestic market, local scrap is offered at PKR 130,000-132,000/t ($460-468/t), while rebar is quoted at PKR 215,000-220,000/t ($761-779/t) and billet at PKR 188,000-190,000/t ($666-673/t).
Domestic market indicative levels
- Local scrap: PKR 128,000-130,000/t ($453-460/t)
- Rebar: PKR 216,000-218,000/t ($765-772/t)
- Billet: PKR 185,000-188,000/t ($656-666/t)
- Bala: PKR 175,000-178,000/t ($619-631/t)
Mill operations are at around 35-40% capacity amid muted demand and tight liquidity. Overall, buying remains cautious, with limited restocking and preference for short-cover requirements.
Outlook: Sentiment remains mixed, as tight cash flow and weak steel demand continue to limit fresh buying. Any meaningful recovery is likely only after December, although a short-lived rebound driven by limited restocking could be seen in the coming days.
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