- Buyers maintain cautious hand-to-mouth procurement
- Mills operate at only 30-35% capacity
Pakistan’s imported ferrous scrap market remained largely quiet during the week, with trading activity failing to gain momentum after the Eid holidays. Buyers continued to maintain a cautious approach amid weak finished steel demand, low mill utilisation rates, and comfortable inventories. BigMint assessed Europe-origin shredded scrap at around $420/t CFR Qasim, inching up by around $1/t w-o-w.
Market participants reported that UK/EU-origin shredded scrap transactions were concluded at lower levels compared to the previous week, reflecting weaker buying interest. Around 1,300 t of UK-origin shredded scrap was reportedly sold at $414/t CFR Qasim, while a 1,000 t cargo was reportedly booked at $420/t CFR.
Weak demand pressures import activity
According to market sources, offers for imported shredded scrap were largely heard at $420-425/t CFR Qasim, while most buyers remained comfortable at $415-418/t CFR. Despite some post-Eid buying inquiries, mills showed little urgency to secure cargoes, resulting in a slow market.
A Karachi-based trader commented, “No significant market movement has been observed since Eid. Trading activity remains slow, and most mills are still operating cautiously.”
Another market participant noted, “Offers around $425/t CFR are being largely ignored, while buyers continue indicating bids near $415/t CFR. Demand is much weaker than expected after the holidays.”
Domestic market update
Domestic steel indicators remained largely rangebound. Billet prices were heard at around PKR 217,000/t ($780/t), while Grade 60 rebar traded at PKR 245,000-247,000/t ($880-887/t). Local scrap prices were reported at PKR 148,000-150,000/t ($532-539/t), while Bala was heard at PKR 200,000-205,000/t ($718-736/t).
Market participants estimated overall company sales levels at only 30%, while mill capacity utilisation remained around 30-35% with a continued weakness in construction activity and downstream steel consumption.
Outlook
Pakistan’s imported scrap market is expected to remain subdued in the upcoming days as weak steel demand, low mill utilisation, and cautious buying sentiment continue limiting fresh bookings. While shredded scrap offers are currently heard around $420-425/t CFR, buyers are likely to continue purchasing only on a need-based basis unless domestic steel demand shows a meaningful improvement.
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