- Local scrap shortage may lift prices, but upside limited
- Mills eye demand revival as electricity tariff cuts ease cost pressure
Pakistan’s imported scrap prices softened w-o-w. Buyers remained cautious, but most buyers managed to secure expected levels. With more interest likely in the coming days, offers at $395-405/t are seeing a selective response. Finished steel prices continue to hover in a tight range, and mills are eyeing a demand revival this week.
BigMint‘s assessment for European/UK-origin shredded scrap stood at $392/tonne (t) CFR Qasim, down by $4/t w-o-w.
“Meanwhile, the phased reduction in electricity tariffs by PKR 6-8/unit may provide some much-needed relief to shrinking mill margins, noted a mill source.
On the import front, 3,500-4,000 t shredded scrap from the UK and Europe was booked at $390-394/t levels on a CFR Qasim basis.
“A decline in finished steel exports to the US will likely trigger a shift in the market, as in this scenario, only lower-grade scrap like HMS may continue to flow out, while prime grades are expected to be retained by US mills for domestic consumption. This could drive up offers for prime scrap globally. Currently, we are seeing shredded offers from the UK/EU into Port Qasim at over $395/t, while UAE-origin HMS, PNS, and shredded are being quoted in the $385-400/t range,” commented a UK-based scrap supplier.
“The market remains sluggish, and none of us are pushing for an upward move at this point as far as rebar prices are concerned. Domestic trading activity has been minimal, with buyers remaining cautious. Security concerns in Balochistan are also weighing on sentiment, delaying new infrastructure or construction projects. Some optimism may emerge around May or June with the upcoming budget, which could lift confidence. But for now, both demand and activity remain weak,” stated a leading Karachi-based steel company official.
“Imported shredded scrap from the UK/EU is currently at $380-390/t CFR Pakistan, which is the workable level, while domestic scrap offers were heard at PKR 130,000-140,000/t ($463-499/t) ex-yard. A slight shortage has emerged in the local market following the long holidays, which could push prices up to PKR 145,000-148,000/t ($516-527/t). However, given the slow pace of market activity, any upward movement is expected to be gradual,” commented a trader based in Lahore.
“The market is expected to reopen tomorrow, but meaningful activity may take another week post-Eid. Shredded scrap from the UAE is now being offered at $402-404/t CFR Qasim, up by $3-4/t. Imported prices remain firm amid ongoing global uncertainty,” noted a Karachi-based trader.
Domestic scrap was last heard at PKR 135,000-140,000/t ($481-499/t), while billet hovered around PKR 200,000-205,000/t ($712-730/t). Rebar prices stood at PKR 235,000-240,000/t ($837-855/t). Imported shredded from the EU/UK is at $390-395/t CFR Qasim, but buying interest remains limited after Eid.
Outlook: Imported scrap prices are likely to remain firm in the near term, supported by tight domestic supply and steady offers. However, trade activity may stay subdued until full market resumption. Any upward momentum will hinge on restocking demand and clarity on infrastructure spending in the upcoming budget. Cautious sentiment is expected to prevail until then.
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