- Weak steel demand, low mill utilisation rates limit scrap trade
- Buyers target $400/t CFR amid expectations of further correction
Pakistan’s imported shredded scrap market remained under pressure this week as lacklustre finished steel demand, low mill utilisation rates, wide bid-offer disparities, and cautious procurement strategies weighed on buying activity. Market participants reported limited trading interest, with most mills restricting purchases to immediate requirements while anticipating further corrections in global scrap prices.
BigMint assessed Europe-origin shredded scrap at around $416/t CFR Qasim on 16 June 2026, down by around $1/t w-o-w. Market sentiment, however, remained noticeably weaker than the assessment suggests, with buyers continuing to test lower levels.
Current UK- and EU-origin shredded scrap offers were heard at $415-418/t CFR Qasim, while most buyers were bidding at $405-410/t CFR. Several market participants indicated that buyers are increasingly targeting levels closer to $400-405/t CFR, reflecting expectations of a broader regional correction.
A Peshawar-based trader noted, “The market is extremely quiet. Buyers believe prices will continue to soften and are in no hurry to book cargoes. Most are waiting for suppliers to reduce offers further.”
Mills booked a total of 15,000 t of imported scrap during the assessment period. The largest transaction was a 6,000-t cargo of Malaysia-origin shredded scrap booked at $435/t CFR Karachi. In addition, 8,500 t of shredded scrap from the UK and Belgium was traded to Qasim Port within a range of $415-425/t CFR, with a weighted average price of approximately $419/t CFR.
Trade activity indicates a gradual softening trend in prices, with the majority of recent bookings concentrated around $415-417/t CFR, compared with earlier transactions concluded at $423-425/t CFR.
Buyers expect further downside
Market sentiment has weakened further amid expectations that international scrap prices may continue to soften.
Participants indicated that recent developments in the region and expectations of a more stable geopolitical environment have encouraged buyers to delay purchases in anticipation of lower prices. Mills are also closely monitoring developments in Turkiye, where deep-sea scrap prices continue to trend downward.
One Karachi-based importer said, “The market is silent. Buyers are trying to pull prices lower and are convinced that there is still room for correction.”
Although domestic scrap prices in Europe and the UK remain relatively firm, limiting exporters’ flexibility, buyers believe current offer levels are unsustainable given weak steel demand across South Asia.
Domestic steel sector remains under pressure
Weak downstream steel demand continues to limit raw material procurement. Domestic billet prices were assessed at PKR 218,000-220,000/t ($783-790/t), while Grade 60 rebar was traded at PKR 245,000-248,000/t ($880-891/t).
Domestic Bala was at PKR 205,000-208,000/t ($737-747/t), while local scrap prices were heard at PKR 152,000-156,000/t ($546-560/t). Lower-grade scrap was available at PKR 144,000-145,000/t ($517-521/t).
According to market participants, steel producers are operating under severe pressure. Company sales are estimated at only 35-40% of normal levels, while average capacity utilisation has shrunk to 30-35%.
Outlook
Pakistan’s imported shredded scrap market is expected to remain under pressure in the coming days. Weak steel demand, low mill operating rates, and abundant domestic scrap availability are likely to keep buyers cautious. While firm collection costs and relatively high domestic scrap prices in Europe and the UK may prevent a sharp decline in export offers, market participants increasingly view $400-405/t CFR Qasim as a realistic, near-term workable level. Any recovery in buying activity is likely to depend on improved steel demand, stronger mill margins, and clearer direction from regional scrap markets.
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