- UK-origin shredded deals heard at $425-427/t CFR Qasim
- Weak mill utilisation continue to weigh on buying sentiment
Pakistan’s imported ferrous scrap market remained largely cautious this week, ending on 12 May, although shredded scrap offers edged up slightly amid firmer overseas sentiment and limited container availability. However, buying activity remained selective as domestic steel demand continued to stay weak and market participants monitored geopolitical uncertainty following failed regional peace discussions.
BigMint assessed Europe-origin shredded scrap at around $426/t CFR, inched up $1/t w-o-w.
UK- and EU-origin shredded scrap offers were largely heard in the range of $423-430/t CFR Qasim during the week. Market sources indicated that small-volume UK shredded scrap transactions were concluded around $425-427/t CFR Qasim, including a few 500-t-1000-t parcel bookings.
A Karachi-based trader commented: “Offers have moved slightly higher this week, but buyers are still resisting aggressive bookings due to weak finished steel demand and cautious market sentiment.”
Another Peshawar-based millsides participant said: “Workable shredded levels are still around $425/t CFR Qasim. Mills are buying only hand-to-mouth volumes as June demand visibility remains weak.”
Market participants noted that overall mill sales remained subdued at around 45-50%, while capacity utilisation levels were estimated at only 35-40%, majorly because of weak construction activity and slow downstream demand.
A Karachi-based steel participant noted: “Domestic CRC and galvanised steel prices increased by around PKR 5,000/t ($18/t) recently, but overall steel consumption remains under pressure due to liquidity issues and cautious procurement.”
Domestic steel and scrap prices showed mixed-to-firm trends during the week. Local scrap prices were largely heard at PKR 152,000-156,000/t ($546-560/t), while rebar prices were indicated around PKR 245,000-250,000/t ($880-898/t). Billet prices were heard at PKR 210,000-215,000/t ($754-772/t), while Bala was indicated at PKR 190,000-195,000/t ($682-700/t).
Outlook
Pakistan’s imported scrap market is expected to remain rangebound in the coming days with buyers likely to continue booking limited volumes amid weak steel demand, tight liquidity, and uncertain regional geopolitical conditions. However, relatively firmer international shredded scrap offers and constrained container availability may continue to provide mild support to import prices.
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