- Market likely to stay slow until monsoon impact subsides
- Buyers to stay wary amid weak demand, liquidity strain
Imported ferrous scrap prices in Pakistan remained steady w-o-w, with Europe/UK-origin material at $380-385/t CFR, US shredded at $378-380/t CFR, UAE shredded at $390-395/t CFR, and Middle East HMS and PNS scrap at $370-380/t CFR.
The market remained slow amid the monsoon season, with trades lacking momentum and buyers staying cautious on fresh bookings.
BigMint assessed European/UK-origin shredded at $380/t CFR Qasim, stable as compared to last week.
As per market participants, UAE shredded was offered at $390/t, Kuwait shredded at $394-395/t, UAE HMS at around $365/t, and PNS UAE at $375/t. Market sentiment remained watchful amid low buying appetite.
Recent deals heard
- 500 t of fabrication (UAE) at $378/t CFR Qasim
- 500 t of sheared HMS (UAE) at $395/t CFR Qasim
- 1,000 t of shredded (Europe) at $380/t CFR Qasim
- 1,000 t of shredded (Europe) at $380/t CFR Qasim
Domestic market updates
Domestic steel demand was weak, with the ongoing monsoon season and persistent liquidity challenges continuing to dampen sales. The USD/PKR exchange rate remained stable with slight improvement, but market activity was still sluggish amid clustered and slow transactions.
Local scrap was last heard at PKR 137,000-138,000/t exw ($483-487/t). Rebar was heard at PKR 238,000-240,000/t ($838-846/t), billet at PKR 200,000-202,000/t ($705-712/t), and bala at PKR 186,000-188,000/t ($655-662/t). Mills remained operational, with some sticking to local scrap-dominated charge mixes, while others opted for imported feed.
Outlook
Market momentum is unlikely to improve significantly before the monsoon season ends, with liquidity constraints and cautious buying expected to keep trade volumes thin. Price direction will depend on exchange rate stability and regional scrap offers in the coming weeks.
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