Pakistan: Imported scrap prices dip $2/t w-o-w on weak demand, monsoon impact

• Market cautious amid seasonal, fiscal pressures
• Steel market stable; mills operating at low capacity

Pakistan’s imported shredded scrap offers edged down slightly this week to $370-372/t CFR Qasim, as mills remained cautious amid seasonal slowdowns and uncertainty following recent budget announcements.

BigMint assessed European/UK-origin shredded scrap at $372/t CFR Qasim, marking a marginal w-o-w decline of $2/t.

Recent deals:

• A 500 t of EU shredded sold at $373/t CFR Qasim.
• A 1,500 t of UK-origin premium yard shredded scrap, at $371-375/t CFR Qasim.

Market updates

EU shredded scrap is offered at $370-374/t CFR, while UAE shredded commands a slight premium at $382-385/t CFR due to faster delivery times and shipping disruptions from Western regions. HMS-PNS mix offers stood at $378-382/t CFR.

A trader said, “Preference is strong for UAE material due to faster delivery and the current shipping disruptions from Western regions. Several previously inactive customers have started buying again as low production and recovering consumer demand are helping mills rebuild inventories.”

Another market participant said, “The monsoon could dampen activity further, with flooding and heavy rain reported in several regions. However, now that budget implementation details are clearer, buyers can better evaluate which products and origins make sense under the new duties and taxes.”

Seasonal factors also weighed on operations, with mills running at 30-40% of capacity. Offers remained limited, and daily business was confined to small volumes as buyers adopted a wait-and-watch approach.

Domestic steel market

The local steel market continues to operate at subdued levels, with mill utilisation rates hovering around 35-40% due to seasonal slowdowns, Muharram, and the ongoing rainy season.

“Domestic steel prices in Pakistan remained stable this week, with rebar reported between PKR 235,000-245,000/t ($828-863/t) ex-works, varying based on payment terms. Billet prices were quoted at PKR 202,000-205,000/t ($712-722/t) exw, while bala was available at PKR 194,000-196,000/t ($684-691/t) exw. Local scrap hovered in the range of PKR 135,000-140,000/t ($476-493/t) exy.”

Despite stable pricing, buyers have largely adopted a wait-and-watch stance, monitoring the evolving impacts of budgetary policies before committing to new volumes.

Outlook:

The market remains moderate as Muharram observances, ongoing rains, and month-end closures curb activity. While some restocking interest is emerging, mills are expected to maintain a cautious stance until demand stabilises and the impact of new fiscal measures becomes clearer.