- Multiple EU shredded bookings done at $380-382/t
- Restocking may slow down if heavy rains persist
Imported shredded scrap prices in Pakistan increased by $5/t to $382/t CFR Qasim. As per market insiders, a notable gap of $15-20/t has emerged between Indian and Pakistani buying levels.
However, Pakistan is currently witnessing some restocking activities, with deals likely even at higher levels of up to $385/t CFR from EU yards.
BigMint assessed European/UK-origin shredded scrap at $382/t CFR Qasim, an increase of $5/t w-o-w.
“Just booked 1,000 t of EU shredded at $382/t CFR Qasim. UK/Europe offers are around $385/t now. Local scrap is trading at PKR 142,000-144,000/t ($498–505/t), billet at PKR 206,000-210,000/t ($723-737/t), and rebar at PKR 235,000-240,000/t ($825-842/t),” a Karachi-based mill source said.
A major Karachi-based trading source informed that buyers are active at $380-385/t levels for EU/UAE shredded scrap, while offers have firmed up to $385-390/t from the EU and $395-400/t from the UAE.
The source confirmed multiple bookings:
- 2,000 t of UK/EU shredded at $380/t CFR Qasim
- Another 2,000 t of UK/EU shredded at $382/t CFR Qasim
A UAE-based scrap trader said, “There is no real change in market sentiment compared to last week. Demand in Pakistan remains weak due to heavy rains and flooding. Indian buyers are still at $360/t for shredded, but with Pakistan’s restocking sentiment, Indian mills will have to raise bids if they want material from the EU or nearby origins. The market’s very soft overall. Even at Port Qasim, there is hardly any movement on shredded. We are now hearing EU shredded offers at around $385/t CFR Qasim, while UAE levels are hovering at $395-400/t.”
Gadani market picks up as HKC compliance gains pace
Pakistan’s ship recycling market is regaining steam as HKC compliance and DASR approvals progress. Buyers are showing renewed aggression, especially for dry bulk vessels, with two ships currently idling off Gadani awaiting clearance. Yards are getting busier, supported by provisional DASRs, even as plate prices remain flat at $612-615/t. However, the recent hike in service tax from 9% to 15% may add cost pressure.
Vessel arrivals jumped to 15,761 LDT this week, up from 5,964 LDT last week, signalling a strong close to July and a firmer start to August.
Outlook
Imported scrap prices in Pakistan are expected to hover around $385-390/t CFR for EU and UAE-origin material in the near term. However, weak steel demand and ongoing monsoon disruptions may weigh on mill operations and limit buying momentum.
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