- Gadani recyclers await larger vessels amid HKC compliance delays
- Domestic scrap prices steady, selective buying seen in import market
Imported scrap prices slipped by $4/t w-o-w with EU/UK shredded scrap workable levels heard at $365-367/t, while the Dubai market remained stable with sellers holding firm on pricing. Low inventories among buyers are keeping sales steady in select pockets. Mills anticipate improved market movement from October as weather conditions improve.
BigMint assessed European/UK-origin shredded at $366/tonne (t) CFR Qasim, decreasing by $4/t w-o-w.
Market updates
As per a Karachi-based steel mill source, shredded EU/UK scrap traded at $365-368/t CFR Qasim, while HMS sheared from the UAE was offered at $360-365/t CFR Qasim. On the domestic front, scrap was offered at PKR 138,000-140,000/t ($487-494/t) exw, rebar at PKR 235,000-238,000/t ($829-840/t) exw, billet at PKR 200,000-202,000/t ($706-712/t) exw, and bala at PKR 190,000-192,000/t ($670-677/t) exw.
In the past seven days, Pakistani buyers booked around 4,500-5,000 t of shredded scrap from the UK/EU at $365-373/t CFR Qasim, along with 1,000 t of HMS 80:20 from the UK at $340/t, 1,000 t of busheling from Brazil at $369/t, and 1,000 t of bundle scrap at $315/t.
As per a UAE-based scrap exporter, imported scrap in Pakistan was assessed at $385/t for UAE shredded, $365-366/t for UK shredded, $360-365/t for UAE HMS sheared, and $380/t for UAE fabrication material.
In the domestic market, rebar offers were reported at PKR 232,000-235,000/t ($819-830/t), billet hovered at PKR 203,000-205,000/t ($717-723/t), and local scrap remained steady at PKR 138,000-140,000/t ($487-495/t).
Another local steelmaker source mentioned that the market is quiet with selective buying seen towards the weekend. Current offers for UK shredded are around $365/t, with bids at $360/t. In the domestic market, local scrap is at PKR 138,000-139,000/t ($487-491/t), rebar at PKR 235,000-238,000/t ($830-841/t), and CC billet at PKR 195,000-198,000/t ($688-699/t).
Ship recycling: Gadani ports remained inactive amid DASR certification hurdles and delays in HKC compliance. Recyclers are avoiding smaller LDT units, while the lack of HKC-certified yards restricts imports, leaving Gadani recyclers waiting for larger vessels. Most LNG and non-ferrous tonnage is India-bound, as Pakistan has banned LNGs since 2007.
Yard upgrades for HKC compliance continue, and fundamentals remain supportive–PKR has strengthened against the USD, and steel plates hold firm at $619-623/t–potentially boosting Pakistan’s recycling prospects by year-end. Gadani received no vessels this week, similar to the previous week.
Outlook
Imported scrap prices are expected to remain stable to slightly soft, with domestic scrap, rebar, and billets likely to hold steady, supported by limited availability and cautious buying ahead of October, when mills anticipate improved steel movement as weather conditions improve.
Leave a Reply