- Imported scrap prices firm; buying cautious amid weak demand
- Ship recycling interest improves, HKC constraints cap activity
Prices of imported shredded scrap in Pakistan stood steady at $365/t CFR for the week ended 13 January. Offers for shredded scrap from the European Union were being quoted as high as $368-370/t, with reports of deals around $360-362/t, although they may not close at those levels as per market insiders. As per market participants, some EU-origin shredded scrap offers rose to $370-375/t CFR, up from $360-365/t, with market talk indicating fresh offers could test $375-380/t in the near term.
Prices from the UAE increased by $5-6/t over the past 5-6 days, lending further support to regional benchmarks. HMS and PNS scrap is assessed at around $350-355/t CFR, while fabrication scrap is quoted higher at $375-380/t.
Despite firmer offers, buying activity stayed limited, constrained by weak finished steel demand and broader economic pressures. That said, restocking is expected to continue cautiously.
Market comments
On the supply side, European shredders remain reluctant to quote prices unless container freight becomes competitive with bulk, limiting near-term offer visibility.
As per Europe-based scrap suppliers, current offers from Europe and the UK are in the $370-372/t CFR range, while workable levels are seen at $360-365/t. Market sources also indicated that four to five deals were booked at around $362-366/t CFR Qasim
A Karachi-based steel mill source commented, “Prices have been trending firm, largely supported by rising international scrap costs. While overall demand remains cautious, the steady increase in raw material prices has created upward pressure, allowing billet prices to move up across regions. In the domestic market, Punjab/KPK rebar is trading around PKR 220,000-225,000/t ($786-804/t), and Sindh rebar at PKR 227,000-228,000/t ($811-814/t), while billet levels are near PKR 185,000/t ($661/t). The market is holding at these levels, with buyers remaining selective.”
Pakistan shows renewed ship recycling interest in early 2026 as buyers upgrade to HKC standards, but offers trail India’s despite strong fundamentals. Local steel plate prices rose $6/t w-o-w to $585/t (well above peers) with PKR strengthening. Limited HKC-certified yards and certification delays keep Gadani anchorage empty for a second week. Improved competitiveness and readiness needed for 2026 tonnage capture.
Outlook
Market insiders expect near-term sentiment to remain bullish. Limited availability may support prices briefly, but current steel demand and liquidity stress should cap the firm upside.
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