- Buyers target $400-405/t amid ample availability of offers
- Mills remain cautious as capacity utilisation remains below 40%
Pakistan’s imported ferrous scrap market weakened during the assessment week ended 23 June 2026 as subdued steel demand, cautious procurement activity, and ample scrap availability pressured prices. Buyers largely restricted purchases to urgent requirements, while mills avoided building inventories ahead of the Ashura holidays during 25-26 June.
BigMint assessed Europe-origin shredded scrap at around $411/t CFR Qasim on 23 June 2026, down by around $5/t w-o-w.
Market participants reported that although UK and European suppliers continued offering shredded scrap at $410-415/t CFR, most buyers targeted $400-405/t CFR amid weak finished steel demand and sufficient availability of offers.
In the wider regional market, Malaysia-origin shredded scrap was last reported at $430/t CFR Karachi, while UK/EU-origin shredded scrap offers were heard at $410-415/t CFR Qasim, and PNS material was offered at around $420/t CFR. However, limited buying interest continued to restrict transaction activity and keep negotiations prolonged.
One Karachi-based trader noted that buyers were unwilling to chase higher offers given the sluggish steel market and the upcoming holiday break.
The recent reopening of the Strait of Hormuz added short-term pressure to sentiment by easing concerns over freight and supply disruptions. However, market participants expect the impact to be temporary, with freight conditions and trade flows likely to stabilise in the coming weeks.
Trades captured between 17-23 June 2026
- UK/EU-origin shredded scrap: 1200 t booked at $415/t CFR Qasim.
- UK/EU-origin pig iron skulls: 500 t booked at $258/t CFR Qasim.
- UK/EU-origin steel skulls: 500 t booked at $333/t CFR Qasim.
Domestic market also remains weak
Domestic market fundamentals remained weak, with buyers limiting purchases ahead of the Ashura holidays. Market participants noted that most mills preferred to maintain minimum inventories rather than build fresh positions before the extended break. Local scrap prices were assessed at PKR 150,000-155,000/t ($539-557/t), while lower-grade scrap traded at PKR 145,000-146,000/t ($521-525/t).
Finished steel demand remained sluggish, with rebar prices heard at PKR 244,000-245,000/t ($877-881/t) and continuous-cast billets at PKR 218,000-219,000/t ($784-787/t). Bala billet prices were at PKR 202,000-204,000/t ($726-733/t).
According to market participants, steel mills were operating at around 35% capacity utilisation, while sales levels hovered near 40% — indicating weak downstream consumption across the long steel value chain.
Outlook
Pakistan’s imported ferrous scrap market is expected to remain quiet during the Ashura holiday period, with mills restricting purchases to immediate requirements amid weak finished steel demand and low operating rates. Trading activity may improve after the holidays, but a sustained recovery in scrap demand will depend on stronger rebar sales, improved billet offtake, and higher mill utilisation levels.
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