- Cost pressures and weak steel demand expected to cap significant price gains
- Mild upside expected as winter tightens Western scrap collection rates
Pakistan’s imported shredded scrap market remained stable w-o-w at $354-356/t CFR for the week ended 14 Nov’25. In the starting of the current week, European/UK-origin shredded was assessed at $355/t CFR Qasim, with some mills indicating that $353/t could still be workable for select shipments.
HMS from the Middle East was heard at $338/t CFR Qasim, while sheared HMS traded near $343/t CFR. A major long steel producer said weekly imported scrap purchase planning was set at around $350/t, adding that workable levels could move above $355/t as winter begins to pressure collection rates.
Booking volumes remained modest, with about 6,000-8,000 t of shredded scrap booked from UK and European suppliers. Domestic scrap availability stayed adequate, though market participants expect a tighter supply if import prices continue rising. Local scrap hovered between PKR 135,000 – 140,000/t ($478-496/t).
As per market insiders, finished steel margins remain under pressure, with mills citing currency weakness and inflation driven cost escalation.
Billet stood at PKR 188,000-190,000/t exw ($665-673/t), rebar hovered at PKR 222,000-225,000/t exw ($786-796/t), while bala was heard around PKR 178,000-180,000/t exw ($630-637/t).
Mills continued to operate at roughly 40% capacity utilisation, with no visible improvement.
Outlook
Pakistan’s imported scrap market is likely to see mild upward pressure as winter slows Western collection. However, limited liquidity–despite seasonal demand improvement toward the month-end–could restrain aggressive booking interest from mills and importers.
Leave a Reply