Pakistan: Imported ferrous scrap prices dip by $2/t w-o-w; mills stay cautious on bookings

• Mills hold back purchases on high inventory levels
• Prices expected to stay subdued amid bid-offer gap

Imported shredded scrap from Europe to Pakistan was offered at $370-372/tonne (t) CFR Qasim. Trade inquiries continued to remain below $368/t levels. In the present market, tradable levels for suppliers still remain near $370/t even though the margin is less at these tags.

BigMint‘s assessment for European/UK-origin shredded scrap stood at $368/t CFR Qasim, down by $2/t w-o-w.
BigMint’s EU-origin shredded scrap is still hovering at around four-and-a-half year lows (these levels were last seen in November 2020).

In the last seven days, around 5,000-6,000 t of mixed scrap were booked at a $365- $380/t range CFR Qasim.

Market comments

“Yesterday, some sellers also offered shredded at $368/t which kept margins strained. Rebar levels were at PKR 234,000-235,000/t ($835-$836/t) exw and billet at PKR 200,000-202,000/t ($711-718/t) exw,” said another Karachi-based mill source.

“The market remains cautious, with inquiries primarily focused on lower price levels. Domestic scrap prices are stable at PKR 135,000-138,000/t ($480-491/t), as mills refrain from making significant purchases due to existing inventory levels,” said a mill source from Islamabad.

A Karachi-based mill shared, “Rebar is priced at PKR 235,000/t ($836/t), billet at PKR 205,000/t ($729/t), and local scrap at PKR 140,000/t ($498/t). Imported shredded scrap is offered at $370-372/t CFR, while UAE-origin shredded is at $380/t. We’re waiting for $365/t levels.”

Other updates

Wire rod offers from China were at $480-490/t CFR Karachi this week. For flat products, HRC prices from China to Pakistan were at $465-470/t CFR for Q195/Q235 3-12 mm, while HRC SAE 1006 (2-2.75 mm) was priced $10-2/t higher than the base price.

Outlook

Market sentiments in Pakistan are expected to remain sluggish this week, with mills expecting further price drops due to high unused steel inventories and ongoing bid-offer disparities in the imported scrap trade. Buyers are holding back, especially in terms of EU and UAE scrap. The market outlook will largely depend on global scrap conditions, particularly demand from Turkiye and Asia.