Pakistan's import scrap market has lost momentum over the past week, with fresh ex-UK shredded scrap bookings concluded below last week's levels and the SteelOrbis reference price decreasing by $5/mt. Sentiment has become more cautious as some market participants anticipate further corrections if geopolitical tensions ease. In contrast, several Pakistani rebar producers have announced price increases despite the softer import scrap trend.
More specifically, ex-UK shredded scrap have been sold at $410-415/mt CFR Qasim this week, including a confirmed deal concluded at $414/mt CFR, down from the SteelOrbis reference price of $415-420/mt CFR Qasim reported last week. Accordingly, the reference price for import shredded scrap in Pakistan has decreased by $5/mt week on week, in line with the latest transaction levels.
Looking ahead, “The market may move down if geopolitical tensions ease,” the source told SteelOrbis.
As for other origins, Middle East-origin HMS I/II 80:20 and sheared HMS have been heard offered at indicative levels of around $410-420/mt CFR Qasim, with sheared material positioned at the upper end of the range. Malaysian PNS and shredded scrap have also remained available, although high freight costs have limited buying interest. Some Pakistani mills have continued to cover their September and October requirements, though procurement has become more selective as buyers wait for clearer direction in import scrap prices.
In Pakistan's domestic market, Amreli Steels Maxima and Xtreme grade 60 rebar have been priced at PKR 246,000/mt ($886/mt) delivered, effective August 4, broadly in line with the PKR 242,000-250,000/mt ($871-900/mt) ex-works range reported last week.
Meanwhile, Hunza Steel and Sheikhoo Steel grade 60 rebar prices have each been increased by PKR 7,000/mt ($25/mt) with immediate effect. As previously reported by SteelOrbis, Pakistani bar producers had already started revising their prices upward in mid-July, citing higher international scrap prices, supply chain disruptions and increased oil and transportation costs. The latest announcements therefore appear to reflect mills' continued efforts to pass on the cost increases accumulated over recent weeks and protect their margins, rather than a demand-driven recovery.
According to a local source, similar increases are expected to be implemented more broadly across the Pakistani market rather than remaining limited to individual producers. “The increase is not limited to one or two mills. It is expected to be implemented across the market, and consumers will have to accept the new prices,” the source told SteelOrbis.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 277.75
