- Mill utilisation around 40%, market sluggish
- Tight scrap availability supports prices
Pakistan’s imported shredded scrap prices edged up by $6/t w-o-w to $364/t CFR for the week ended 30 December. Overall activity remained limited, but buyer urgency was more visible than seller interest. Extremely tight availability and mills returning for forward coverage lent support to prices, despite ongoing liquidity constraints.
Market comments
As per a mill-side source, current indicatives in Pakistan are PKR 128,000-130,000/t ($457-464/t) for local scrap, PKR 184,000-185,000/t ($657-661/t) for billet, PKR 218,000-220,000/t ($778-785/t) for rebar, and PKR 175,000-178,000/t ($625-636/t) for bala. Mill utilisation hovered at around 40%, and the market is largely at a standstill. Despite this, some middlemen are still quoting imported scrap offers near $358-360/t.
As per a Europe-based scrap supplier, EU shredded was recently sold at $365/t CFR Qasim for around 1,000 tonnes. Current offers from Europe and the UK are in the $366-370/t CFR range, while workable levels are seen at $360-362/t. Market sources also indicated that three to four deals were booked at around $360-365/t CFR Qasim
Pakistan steel industry raises concerns over Sost tax-free imports
Pakistan’s steel industry has urged the FBR to reconsider allowing duty- and tax-free Chinese imports through the Sost Dry Port for Gilgit-Baltistan. The sector fears misuse, warning that such goods could be diverted to taxable regions, hurting local manufacturers.
As a safeguard, steelmakers suggested taking advance pay orders from importers as collateral, to be released only after the GB authorities issue consumption certificates. They also proposed limiting exemptions to raw materials or scrap while blocking finished and semi-finished goods.
The industry noted that similar exemptions in other regions have been misused in the past. With Pakistan already having surplus steel capacity, it said GB’s steel demand can be met locally and urged FBR to consult stakeholders before finalising the policy.
Gadani sentiment improves on HKC progress
Pakistan’s Gadani ship recycling market saw a w-o-w pickup in sentiment, driven by the commissioning of its first HKC-compliant yard and ongoing infrastructure upgrades. A firmer PKR and relatively stable steel plate prices supported fundamentals, while expectations of more HKC approvals continue to boost confidence, positioning Gadani as a more competitive regional recycling hub.
Outlook
Near-term sentiment remains cautious but stable. Limited scrap availability and forward buying may support prices, though liquidity stress and weak steel demand are likely to cap any sharp upside in the coming weeks.
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