- Selective bookings, soft rebar market drag prices lower
- Elevated freights, tighter supply limit extent of price decline
Pakistan’s imported ferrous scrap prices eased slightly during the week ended 4 August as buyers turned cautious following recent price increases. Despite softer trading activity, elevated freight costs, tighter global scrap availability, and ongoing mill restocking continued to support import offers. Pakistan remained the leading containerised scrap buyer in South Asia, attracting cargoes diverted from India and Bangladesh.
BigMint’s assessment for Europe/UK-origin shredded scrap down by $5/t w-o-w to $414/t CFR Port Qasim.
Market updates
Pakistan remained the strongest buying destination for containerised shredded scrap, with Europe/UK-origin offers rising to $415-425/t CFR Port Qasim, while workable levels were heard at $410-415/t CFR. Fresh UK-origin shredded scrap deals were concluded at $410-415/t CFR Port Qasim, including a confirmed transaction at $414/t CFR.
Market participants said suppliers maintained firm offers due to higher freight costs, seasonal tightness in European scrap availability, and ongoing geopolitical tensions in the Middle East. However, buying activity slowed towards the end of the week as mills evaluated whether prices had peaked before committing to additional purchases.
Middle East-origin material was also offered, with Middle East-origin HMS 80:20 at $410-415/t CFR, sheared HMS around $420/t CFR, while bundle scrap and sheared HMS from Middle East were booked at around $408/t CFR Port Qasim. Malaysia-origin PNS and shredded scrap were heard around $425-430/t CFR, though elevated freight costs limited fresh interest.
A regional supplier said, “Pakistani mills are actively restocking for September and October requirements before replacement costs increase further.” However, another trader noted that buying activity slowed during the second half of the week as the rebar market softened and mills assessed whether prices had peaked and waited for clearer market direction. Several market participants described the market as being “in limbo,” with buyers carefully evaluating fresh offers before committing to new cargoes.
Domestic market
Domestic steel prices remained firm, reflecting higher imported scrap costs. Local scrap traded at PKR 152,000-154,000/t ($547-555/t), while CC billet was heard at PKR 212,000-214,000/t ($764-771/t) and Grade-60 rebar at PKR 245,000-246,000/t ($883-886/t). 
Despite stronger domestic prices, overall construction activity remained weak due to seasonal monsoon conditions, limiting finished steel demand and preventing mills from building large inventories.
Outlook
BigMint expects Pakistan’s imported scrap market to remain firm in the coming week, supported by elevated freight costs, tight global scrap supply, and continued mill restocking. However, weak construction demand, seasonal monsoon disruptions, and cautious buyer sentiment are likely to restrict aggressive price increases, with mills expected to continue booking only prompt cargoes for immediate requirements.
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