Pakistan: Imported scrap prices up $9/t w-o-w amid firm offers, rising freight costs

• Domestic scrap steady; buyers cautious amid soft steel prices.
• Mills await clearer global freight and steel market signals before increasing bids

Imported shredded scrap offers from the UK/EU are currently heard at $385-388/t CFR Port Qasim. Most buyer bids remain capped at $375-378/t, making procurement difficult at prevailing offer levels.

BigMint‘s assessment for European/UK-origin shredded scrap stood at $383/t CFR Qasim, an increase of $9/t w-o-w.

Some mills report an added freight cost of $10-15/t due to shipping route disruptions. Indian port restrictions have forced vessels bound for Pakistan to reroute via Sri Lanka or the UAE (Jebel Ali), resulting in delays and increased freight charges. Container vessels are now using shuttle services from transshipment hubs like Colombo or Jebel Ali to reach Karachi.

Weakness in local scrap and billet prices, coupled with soft rebar realisations, continues to suppress imported scrap appetite as mills remain cautious. While offers are rising, most Pakistani mills remain on the sidelines, bidding conservatively at $375-378/t and waiting for clarity in both global freight and local steel markets.

Market commentary 

As per a Karachi-based steel mill source, imported shredded from the EU is being offered at $385-388/t CFR Qasim, while most mills are negotiating around $375-378/t. Domestically, scrap is at PKR 140,000/t ($496/t). Rebar is offered at PKR 230,000-235,000/t ($814-832/t) exw, while billet and bala are at PKR 190,000-200,000/t ($672-708/t) ex-works.

“Rebar offers are currently at PKR 240,000-242,000/t exw ($849-$856/t), while billet is around PKR 200,000-204,000/t ($707-$722/t). Local scrap is available at PKR 138,000-140,000/t exw ($488-$496/t),” said a Punjab-based steel mill.

“Imported shredded offers are over $385/t, but we’re bidding around $376-378/t– it’s getting difficult to secure material. Rising freight costs have become a real pain point.”

“Market is largely stable — it’s just the usual seasonal lull. Rebar sales are continuing,” said a trader.

“Major suppliers are offering shredded at $385-387/t CFR Qasim, with a major Europe-based supplier quoting $387-388/t. Others are mostly at $385/t,” he added.

As per a domestic trader, “In the local market, scrap is available at PKR 136,000-140,000/t ($481-496/t), and rebar is trading at PKR 235,000-242,000/t exw ($832-857/t).”

Outlook

Shredded scrap offers are rising, but trade remains subdued due to weak buying sentiment and logistical hurdles. Suppliers are increasingly redirecting cargoes to India, where conditions are more favourable. Persistently high freight costs continue to limit Pakistani buyers’ flexibility, slowing trade momentum in the near term and might support scrap inflows from UAE origins.