- Buyers cautious, imported scrap prices fall to 4.5-year low
- Market recovery hinges on global scrap trends and rebar demand
In Pakistan, imported shredded scrap from Europe was offered at $368-372/tonne (t) CFR over the past week, with sluggish trade inquiries below $370/t levels.
Currently, workable levels are hovering at around 4.5-year lows (these levels were last seen in November 2020), as cautious buying and weakening finished steel prices continue to dampen imported scrap trade activity.
BigMint‘s assessment for European/UK-origin shredded scrap stood at $370/t CFR Qasim, down by $5/t w-o-w.
In the last seven days, around 9,200-9,500 t of mixed scrap were booked at $368 to $422/t range CFR Qasim.
Market comments
“Last week, a deal closed at $385/t for 500 t of UAE shredded. While some buyers are still bidding below $380/t, it is getting tough to secure material at these levels. EU-UK origin shredded was mostly at $370-374/t, but some upward movement is expected this week,” said a UAE-based trader.
“Domestic scrap movement was quite slow last week due to tensions at the India-Pakistan border. That situation caused a temporary slowdown, even though overall market demand remained stable. The strike between the two countries has now ended, but it did affect positioning last week, especially for scrap moving from the port. With routes reopening, we expect the position to improve gradually,” said a market insider.
“Rebar prices are quoted at PKR 240,000-245,000/t ($855-873/t), though actual sales are happening at around PKR 235,000-240,000/t ($837-855/t). Billet is trading at PKR 200,000-205,000/t ($713-730/t), while local scrap stands at PKR 134,000-138,000/t ($477-491/t). Imported shredded scrap is at $372-375/t from the UK/EU, and UAE material remains above $380-385/t,” said a Karachi-based mill source.
“It has been a quiet week for us – rebar is moving at PKR 235,000-240,000/t ($837-855/t), and local scrap is around PKR 135,000-140,000/t ($481-499/t). Not many trades took place as buyers were mostly bidding at $365-366/t, while offers stayed firm at $372-374/t. UAE-origin scrap remains unviable at $385-390/t, as most buyers here are comfortable at around $370-375/t CFR Qasim,” said a Gujranwala-based mill representative.
“The market is very quiet at the moment–no major activity. Offers are around $368-370/t from traders, while yards are quoting $375/t and above, though most remain silent. The UAE market is strong, so local prices there have not changed. Last week, shredded scrap was sold at $370/t, but no deals have closed this week. Local scrap is at PKR 134,000/t ($477/t) and rebar is in the PKR 235,000-240,000/t ($837-855/t) range,” said a local scrap trader.
“Buyers are holding back, expecting further price drops and bidding at around $365/t. Domestic scrap in Pakistan remains steady at PKR 135,000-138,000/t ($481-491/t), while rebar prices have softened to PKR 230,000-235,000/t ($820-837/t). UAE shredded is still at $385/t, creating a wider gap compared to EU-origin material. Once the US and China reach a tariff agreement, we could see an upward movement,” said a UAE-based scrap supplier.
Outlook: Market sentiment in Pakistan remains weak due to sluggish finished steel consumption and ongoing uncertainty in imported scrap trade. Buyers are holding back, expecting further price drops, particularly for EU and UAE scrap.
Although disruptions in the border situation affected domestic scrap and finished steel movements, this is expected to improve as routes reopen. The market outlook depends on global scrap conditions, particularly in Turkiye, and the stabilisation of local rebar demand.
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