- UK shredded scrap trades heard at around $420/t CFR
- Monsoon, tax issues keep mill buying selective
Pakistan’s imported shredded scrap prices strengthened w-o-w despite selective mill buying, with UK-origin shredded scrap reportedly sold at $420/t CFR Port Qasim. Higher freight costs and firmer global scrap prices kept seller offers elevated, while monsoon conditions, payment issues, tax uncertainty, and low mill operating rates continued to limit buying activity.
BigMint assessed Europe-origin shredded scrap at $419/t CFR Qasim, up $2/t w-o-w.
Buying interest was also reported from the Philippines, although no transactions were confirmed. No fresh activity was reported from Malaysia.
Market scenario
As per a UK-based scrap supplier, UK-origin shredded scrap offers were heard at $420-425/t CFR Qasim, while buyers were generally targeting $415-418/t. Around 3,000 t was reportedly sold at $420/t CFR Qasim. Other reported deals included 500 t at $415/t and another 500 t at $418/t.
A Karachi-based importer source also reported a 200 t cargo of UK-origin PNS sold at $417/t, while 250 t of Middle East-origin fabrication scrap was reportedly booked at $424/t CFR Qasim.
A Peshawar-based steel mill source said the market remained divided between firm seller expectations and cautious buyer sentiment. “Sellers remained firm, while buyers continued to resist higher offers amid weak downstream demand,” the source said.
Higher freight costs and firmer international scrap prices continued to keep import offers elevated. Container availability remained another concern on some routes, making it difficult for buyers to secure fresh cargoes at lower levels.
A European scrap trader said the imported shredded market had turned quieter after stronger activity in the previous week, with bids around $415/t CFR Qasim against offers of $417-420/t.
Domestic market
The domestic steel market remained under pressure as weak sales and low mill utilisation kept scrap buying cautious. Overall mill utilisation was below 40-45%, with some mills operating at around 60-70% capacity. With sales also estimated at 40-45%, most buyers were focusing on immediate requirements rather than building inventories.
Logistics added to the pressure. The transporters’ strike from 7-17 August disrupted scrap deliveries, while flooding and power-supply issues continued to affect mill operations and material movement.
Recent tax changes have further unsettled the market. Participants remained in a wait-and-watch mode, seeking greater clarity on the revised provisions before making larger commitments.
Local scrap was heard at PKR 139,000-141,000/t ($501-508/t) exw, while billet stood at PKR 214,000-217,000/t ($771-782/t) and rebar at PKR 238,000-240,000/t ($858-865/t).
As per a Karachi-based trader source, payment issues and weak construction activity, particularly in Punjab, have also kept buyers cautious. With finished-steel sales slow, there is limited room to absorb higher scrap costs. For now, procurement is likely to remain focused on smaller, need-based purchases rather than inventory building.
Outlook
Imported shredded scrap prices are likely to remain firm next week, with UK-origin material already trading around $418-420/t CFR Qasim. Higher freight, firm global scrap prices, and limited seller willingness to reduce offers should keep a floor under prices. However, buying should remain selective until tax-related uncertainty eases and post-monsoon steel demand improves. Freight, vessel availability, and the pace of demand recovery will be key in determining whether current import levels hold.
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