- Import sentiment turns bullish as mills build precautionary stocks
- Rebar prices rise over PKR 15,000/t ($54/t) in 3-4 days as input costs rise
In Pakistan, the imported scrap market turned increasingly active over 3-10 March 2026 as mills moved to secure cargoes amid logistics disruptions in the Gulf following the Iran conflict. EU-origin shredded scrap was recently heard for over 6,000-7,000 t at $405-410/t CFR Qasim, with several trades reported around $405/t for May-June arrivals.
EU-origin shredded scrap was assessed at $407/t CFR Port Qasim on 10 March 2026, marking a sharp increase of $23/t w-o-w.
Market participants noted that bookings initially started near $385/t, but tightening supply and precautionary buying by mills pushed prices higher, with traders indicating that fresh deals could test $410/t CFR levels.
Market comments
A steel mill based in Peshawar stated, “Buying has picked up in the past few days as mills are securing material as a precaution due to the Middle East crisis and regional port closures.” Domestic steel prices reacted quickly, with rebar prices jumping from PKR 225,000/t ($804/t) to PKR 245,000/t ($875/t) within three to four days, while billet prices have climbed to around PKR 212,000/t ($757/t).
A Karachi-based steel mill source noted that construction activity usually remains active during Ramadan, keeping mill utilisation around 40-50%. However, mills are currently running at 55-60% capacity as projects rush to complete work before the final phase of Ramadan, with activity expected to slow during 15-31 March. Local rebar prices have jumped from PKR 225,000/t ($805/t) to nearly PKR 245,000/t ($876/t) within the last three days, he added.
Another Karachi-based trading house source indicated freights from Europe to Port Qasim at around $60-70/t, driven by higher bunker fuel and oil prices. Market participants expect fresh deals near $410/t CFR Qasim as supply tightens amid the closure of UAE-linked scrap flows.
Ship recycling activity at Gadani remained limited last week, with only a small-LDT general cargo vessel reportedly arriving. Demand and pricing stayed firm and broadly in line with Bangladesh levels. Local steel plate prices held steady at $591-595/t, while the PKR strengthened slightly against the US dollar. Market participants expect Middle East tensions to potentially redirect more ageing vessels, especially tankers, toward Gadani, which could support arrivals if the yard maintains competitive pricing against India.
Outlook
Tensions around the Strait of Hormuz are starting to affect scrap trade flows, with container logistics becoming more uncertain and some suppliers even discussing force majeure possibilities. Shipments linked to the UAE market have slowed, tightening scrap availability and lifting local finished steel and rebar prices. In the coming days, the market is likely to stay volatile, with buyers expected to continue securing material aggressively amid ongoing logistics uncertainty.
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