- Local scrap-to-rebar spread narrows to below PKR 95,000/t
- Limited LC approvals may hinder post-Eid scrap bookings
Pakistan’s imported scrap offers rose to $395-400/t, with some deals heard concluded at $382-392/t in the last seven days.
BigMint‘s assessment for European/UK-origin shredded scrap stood at $393/tonne (t) CFR Qasim, up by $5/t w-o-w.
Rebar prices are hovering at PKR 238,000-240,000/t exw ($849-856/t), while local scrap is trading at PKR 144,000-146,000/t exw ($513-521/t) amid shortages in the market due to limited inflows of imported material. This has squeezed the scrap-to-rebar spread to below PKR 95,000/t ($339/t). Billet prices are at PKR 208,000-210,000/t exw ($742-749/t).
According to a UK-based supplier, it is a bit of a stalemate right now. Indian buyers are bidding around $380-385/t for UK shredded, while offers to Pakistan were at $395-400/t today. So, suppliers are clearly favouring Pakistan over India.
Recent deals
- 1,000 t UK origin shredded 211 sold at $382/t CFR Qasim, .
- 300 t UAE origin HMS PNS mix sold at $362-365/t CFR Qasim.
- 2,000 t South Africa origin 80:20 sold at $369/t CFR Qasim.
- 1,000 t UK origin shredded booked at $392/t CFR Qasim.
According to a Karachi-based importer, UK shredded is now being offered at over $395/t CFR Qasim, while workable levels stand at $392/t. A recent booking of 1,000 t of UK shredded was confirmed at this price. UAE shredded is being quoted at around $400/t CFR Qasim.
According to a mill source, UK shredded offers are now at $388/t CFR Qasim, but buyers are aiming for $384-385/t, with a 1,000 t lot under negotiation.
UAE shredded levels are slightly higher at $395/t CFR Qasim, while HMS PNS mix is being quoted at $386-390/t CFR Qasim.
In the domestic market, scrap prices are at PKR 140,000-142,000/t exw ($499-506/t). Rebar and billet sales are feasible at PKR 240,000/t ($856/t) and PKR 208,000/t exw ($742/t), respectively. Some mills are offering unofficial discounts to boost sales and ease liquidity pressure.
Pakistan’s ferrous scrap imports rise 21% y-o-y in CY’24
- Pakistan’s ferrous scrap imports grew by 21% y-o-y in CY’24, reaching 2.6 mnt from 2.1 mnt in CY’23, despite the ongoing economic slowdown and LC-related challenges. February 2024 saw the highest monthly imports of 0.26 mnt.
- However, imports dropped by 4% y-o-y in January 2025, falling to 0.21 mnt from 0.22 mnt in January 2024.
Gadani gains momentum but still sluggish
Pakistan’s ship recycling market saw slight activity with a sub-9,000 LDT bulker arriving at Gadani, but deals remained limited as local prices trailed those prevailing in India and Bangladesh. Steel plate prices fell by $3-4/t, while the PKR hit a record low against the USD.
Last week, Gadani Port received 14,126 LDT, up from 5,219 LDT the previous week. However, limited LC issuances and no progress on HKC upgrades put Pakistan at risk of witnessing its slowest year in a decade.
Outlook:
No significant improvement in sales is expected next week, with activity likely to slow further due to the Ei-dul Fitr holidays from 31 March to 2 April, as per a Cabinet Division notification. The market is likely to gain momentum post-Eid, but limited LC issuances and rising global scrap prices may continue to cap activity.
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