Pakistan’s import scrap market has seen a moderate recovery in buying activity over the past week, driven mainly by renewed concerns over Middle Eastern supply routes and the possibility of further disruptions in the Strait of Hormuz. Although fresh ex-UK/EU shredded scrap bookings have been concluded below last week’s levels, sellers have started to raise their indications again, while overall sentiment has remained cautious due to weak finished steel demand, monsoon-related disruptions and continued pressure on local mills.
More specifically, 1,000 mt of ex-UK shredded scrap and 1,500 mt of ex-EU shredded scrap were sold at $390/mt CFR Qasim earlier in the week, down from the $398/mt CFR Qasim deal reported last week. Subsequently, ex-UK/EU shredded scrap has been sold at $393-395/mt CFR Qasim, including a fresh 1,000 mt booking concluded at $395/mt CFR. At least one small booking has been heard at up to $398/mt CFR, while loaded cargoes have been available at around $405/mt CFR Qasim.
The market has started to firm up with sellers raising their indications amid renewed concerns over Middle Eastern supply disruptions. Several suppliers are also reported to have temporarily withdrawn from the market, reducing offer availability and adding further support to prices. Current offers for ex-UK/EU shredded scrap have consequently moved up to $395-400/mt CFR Qasim, compared to the lower deal levels reported earlier in the week and to offers at around $395/mt CFR and above last week. Buyers, however, have generally continued to target around $390/mt CFR. “The market is moving up due to the current war situation, and many suppliers have stopped offering,” a source in the market told SteelOrbis. Accordingly, considering the deals concluded during the week, the SteelOrbis reference price for ex-UK/EU shredded scrap has been assessed at $390-398/mt CFR Qasim.
Meanwhile, a bid for ex-Australia HMS I/II 80:20 has been heard at $355/mt CFR Qasim, although no deal has been confirmed at this level. Offers for short-transit shredded scrap from Malaysia and Oman have also been reported, at around $420/mt CFR Qasim, reflecting higher seller expectations for material with shorter delivery times.
In Pakistan’s domestic market, local sales have remained depressed and bar mills have continued to face pressure from weak demand, even though the outlook has been better after the release of the new budget. Activity in the northern region has also been affected by floods and heavy rainfall, while monsoon conditions are expected to limit the extent of any recovery in construction and steel consumption.
