The Pakistani scrap import market has witnessed a modest decline in deal prices this week, with buyers pushing bids further down amid cautious sentiment. Trading activity has slowed as participants adopt a wait-and-see approach following the announcement of Pakistan’s federal budget.
More specifically, this week, offers for ex-Europe/UK shredded scrap in containers have been voiced mainly at $370/mt CFR, against $375-380/mt CFR last week, though, according to sources, most bids have moved down to $365-368/mt CFR level, down by $4-5/mt week on week. According to sources, as of today, June 18, a deal for ex-EU shredded scrap has been signed at $367/mt CFR following several deals for around 4,000-5,000 mt in total of ex-EU/UK shredded scrap signed at $368-372/mt CFR at the end of last week. “This week sentiments are weak in Pakistan, some suppliers have even stopped offering shredded scrap from the UK,” a market insider told SteelOrbis.
Meanwhile, ex-UAE shredded scrap offers have been voiced at around $380-385mt CFR, down by $5/mt week on week, while offers for HMS grade scrap have been reported at $355/mt CFR, down by $5/mt on the higher end of range week on week.
According to sources, Pakistan’s FY2026 budget is poised to support positive sentiment in the scrap import market, as several key duty revisions aim to reduce input costs for the steel sector. Notably, the two percent Additional Customs Duty (ACD) on all steel scrap has been removed, and customs duty on HMS has been zeroed, offering a clear incentive for scrap-based steelmakers. In parallel, import duties on billets have reportedly been reduced from 11 percent to 5 percent, which, if confirmed, could shift buying preferences toward billet imports, particularly if the cost differential versus scrap widens. This may prompt buyers to reassess their sourcing strategies in the near term.
“Despite these policy changes, clear post-budget direction and its implementation are still pending, leaving market participants hesitant. Many buyers are holding back purchases while awaiting further clarity, which is expected by the end of June,” a Pakistani based trader told SteelOrbis.
In the meantime, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 140,000/mt ($494/mt) ex-warehouse, mainly the same as last week. Besides, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000/mt ($830/mt) ex-works.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 283.23