Market sentiment in Pakistan’s import scrap market has remained under pressure amid global scrap price corrections, while local demand is still weak due to cautious post-Eid buying activity. At the same time, according to sources, uncertainty continues to cloud the outlook for finished steel consumption, prompting mills to operate at limited capacity, with rebar prices staying rangebound but facing downward pressure amid sluggish sales and the lack of clear recovery signals in the domestic market.
More specifically, offers for ex-EU/UK shredded scrap in containers have been voiced at $385/mt CFR and slightly below, compared to $390-395/mt CFR last week. “Although electricity tariffs have been officially reduced, steel mills report that the reduction has not yet been implemented in practice. Besides, scrap availability in the local market remains scarce, adding to operational challenges. Finished steel prices stay dull, while semi-finished products face even greater downward pressure due to ongoing uncertainty and sluggish sales. Contrary to expectations, market activity has not picked up following the holidays in Pakistan,” a market insider told SteelOrbis.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have remained at PKR 135,000-140,000/mt ($481-498/mt) ex-warehouse. The tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000-240,000/mt ($837-855/mt) ex-works, the same as last week, though official offers from local mills have been at PKR 245,000/mt ($872/mt) ex-works and above levels.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 280.83