- Only a few major buyers are active; regular bookings remain low
- Capacity utilisation stuck at 35-40% amid weak end-user demand
Imported ferrous scrap prices in Pakistan held steady w-o-w, with Europe/UK-origin material assessed at $380-382/t CFR.
BigMint assessed European/UK-origin shredded at $380/t CFR Qasim, largely stable as compared to last week.
Meanwhile, UAE offers have stabilised, and enquiries for quick shipments are on the rise. HMS from the EU at $350-355/t, and HMS from the UAE at $370/t.
As per market participants, multiple offers are available, but active buying remains limited.
In Pakistan, of nearly 25 major imported scrap buyers, about half are inactive, with only 10-12 buyers making selective purchases. Daily bookings remain modest at 1000 t, with workable levels around $375-378/t CFR Qasim.
European shredded scrap offers were seen at $380-385/t, with trades mostly at $380/t. Finished steel sales are steady despite tight liquidity, while floods in KPK are dampening sentiment.
HMS from Ireland is around $350/t and shredded at $380/t CFR Qasim. Another key factor behind the market dullness is the dollar exchange rate, which continues to weigh on trade sentiment.
Domestic market update
“Around PKR 145,000-150,000/t ($512-530/t) for good quality local scrap, PKR 235,000-240,000/t ($830-847/t) for grade 60 deformed bars, and PKR 203,0000204,000/t ($716-720/t) for CC billet. Capacity utilisation is only 35-40%, and with rains and floods in several districts, end-user demand remains below average,” commented a Karachi-based scrap trader.
“We booked 1,000 t of EU shredded at $380/t CFR Qasim, though $1-2/t discounts are possible. Locally, scrap is at PKR 142,000/t ($501/t), billet at PKR 201,000/t ($710/t), rebar at PKR 233,000/t ($822/t), and bala at PKR 188,000-190,000/t ($664-671/t). Heavy rains are limiting activity, but lifting continues, and demand may improve by mid-September,” said a mill participant.
Outlook
Pakistan’s imported scrap market is likely to stay range-bound in the near term, with shredded scrap around $380/t CFR as buyers remain cautious amid currency concerns and weather disruptions. Floods and sluggish construction demand are limiting fresh bookings, while liquidity pressure continues to weigh on sentiment. However, with mills gradually lifting material and demand could see a mild recovery by mid-September if rains ease and the PKR improves.
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