Pakistan’s import scrap market has become more volatile this week, with prices showing early signs of firming up after last week’s softer tone. However, the outbreak of war in the Middle East has disrupted trade routes and raised uncertainty over Gulf shipments, prompting buyers to reassess procurement as supply risks mount. Market sources report that concerns over vessel movements through the Strait of Hormuz have tightened availability and added freight-related pressure, lending support to sentiments.
More specifically, offers for ex-UK/EU shredded scrap have been heard at $385-395/mt CFR Pakistan, compared to offers at $378-385/mt CFR heard last week. However, according to several sources, some offers for shredded scrap have already been offered at as high as $395-400/mt CFR, though no buying response has been reported so far.
“Everyone is in a standoff at the moment, with sellers hesitant to quote while buyers prefer to assess the situation before committing,” a source in the market told SteelOrbis.
Meanwhile, trade for ex-UAE scrap has effectively come to a halt this week amid the ongoing war, as shipments from Dubai have been delayed and overall scrap market activity in the Middle East has largely stalled. “Deliveries are uncertain, and bookings are simply not reliable right now,” a market source told SteelOrbis, adding, “No fresh offers are available at present.” Another source noted that the wider Middle East market, including Dubai, Kuwait and Bahrain, is currently “dead silent”, with no movement and little clarity, adding that these trade channels appear to be effectively cut off for now.
Also in Turkey, the import scrap market has been influenced by the outbreak of war in the Middle East, which has increased uncertainty across the global scrap trade. While the conflict is expected to lend some initial support via higher oil and freight costs, Turkish mills remain cautious amid weak finished steel demand and tight margins, with the Strait of Hormuz risks being closely monitored.
Meanwhile, in Pakistan’s domestic market, steel prices have moved upward this week amid concerns regarding scrap shortages and delayed shipments from the Gulf region. Market participants report that grade 60 rebar is now heard at PKR 228,000-229,000/mt ($816-820/mt) ex-works, up by around PKR 3,500/mt ($12/mt) week on week. At the same time, local scrap prices equivalent to shredded are reported at around PKR 141,000-143,000/mt ($505-512/mt) ex-warehouse, up by around PKR 5,000/mt ($18/mt) over the past week.
Market participants warn that continued disruptions to Middle Eastern shipping routes could tighten scrap supply in the coming weeks, potentially prompting mills to return to the market for restocking.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.35