Import scrap prices in Pakistan have edged higher over the past two weeks, with some occasional deals concluded despite limited buying interest. However, domestic customers are resisting further increases, as sluggish construction activity keeps rebar demand weak and local rebar prices are under downward pressure. Mills remain cautious in scrap procurement, balancing tighter scrap availability against muted finished steel sales.
More specifically, this week most offers for ex-EU/UK shredded scrap in containers have increased to $365-370/mt CFR, up by $2-5/mt over the past two weeks. According to sources, some market participants have reported shredded prices as low as $362-363/mt CFR, attributing the decline to halted mill procurements and mounting market pressure. “I tried offering at $365/mt CFR but found no buyers. Selling pressure is mounting, while buyers continue to show resistance,” a Pakistani trader told SteelOrbis.
Meanwhile, offers for ex-UAE HMS/PNS grade scrap have been voiced at $360-362/mt CFR, mainly the same as two weeks ago, while shredded scrap offers from the UAE have remained at $385/mt CFR.
At the same time, according to sources, Pakistani rebar mils have been operating at just 30-35 percent of their capacity, with several others remaining idle. Besides, rebar prices have been declining for the past two weeks, reflecting persistently weak market sentiment, while liquidity constraints have also been weighing on demand, as customers refrain from making new purchases.
Local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 135,000/mt ($476mt) ex-warehouse, down by PKR 3,000-5,000/mt ($11-18/mt) over the past two weeks. Besides, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 230,000/mt ($811/mt) ex-works, down by PKR 5,000/mt ($/18mt) over the period under review.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 283.62