- Mills maintaining low inventories amid uncertain outlook
- Limited rebar demand caps price hikes
Imported shredded scrap offers from the UK/EU are currently quoted at $384-388/t CFR Port Qasim, while most Pakistani buyers are bidding lower at $380-382/t. As a result, procurement remains challenging at current offer levels, with recent deals concluded in the $382-385/t range.
The UAE market remains stable; however, export costs rose by nearly $5-6/t w-o-w due to higher freight charges and the impact of strong regional currencies, putting additional pressure on suppliers.
In Pakistan, after the brief skirmish with India, sellers are facing problems due to war surcharges; as a result, the price has increased by about $10-12/t. Traders who had taken a buying position with scrapyards are trying to divert cargoes to India, as it is getting very hard to pass on the price hikes to customers in Pakistan.
BigMint‘s assessment for European/UK-origin shredded scrap stood at $382/t CFR Qasim, a slight drop of $1/t w-o-w.
Market updates
Traders are offering UK-origin shredded at $380-382/t, while yards are holding at $385-386/t. Dubai shredded is offered at $390-392/t, and HMS at $370-375/t. A 500 t deal of UK/EU shredded was concluded at $382/t CFR Qasim. With a public holiday tomorrow and Eid approaching next week, market activity remains subdued.
Rebar sales are steady, meeting targets. Local scrap is trading at PKR 136,000–138,000/t ($481–489/t), and rebar at PKR 235,000/t ($832/t), said a Karachi-based mill source.
“The rebar rate has gone up by PKR 2,000/t recently, but not everyone followed the hike. Only a few players like Mughal and Sheikhu raised prices, while others are booking at lower levels due to weak demand,” said a Punjab-based steel mill.
With the Eid holidays approaching next week, market activity is limited. “Rebar is reported at PKR 235,000-238,000/t ($832-843/t), and local scrap at PKR 135,000-140,000/t ($478-496/t).
Outlook
Imported shredded scrap prices are rising, but trading remains subdued due to Eid-related slowdowns and ongoing logistical challenges. High freight costs continue to limit Pakistani buyer interest, with some trades still possible from the UAE market. This situation is expected to keep activity slow in Pakistan while supporting increased scrap inflows from the UAE in the near term.
Leave a Reply