Pakistan's import scrap market has remained subdued over the past week, with buying activity remaining very limited and mills continuing to purchase selectively amid weak finished steel demand. At the same time, rising freight costs have kept suppliers' offers firm and allow limited room for price concessions, while market participants are increasingly focused on developments in the Red Sea, which are expected to remain a key factor shaping the short-term direction of the market.
More specifically, two ex-UK shredded scrap deals for 5,000 mt and 1,500 mt, respectively, have been concluded at around $417/mt CFR Qasim this week, with transaction levels remaining broadly stable compared to last week's $416-420/mt CFR Qasim range. Current ex-UK/EU shredded scrap offers have, meanwhile, been heard at $420-425/mt CFR Qasim, broadly unchanged week on week.
“The market is still quite cautious, with buying remaining selective,” a market source told SteelOrbis. Other market participants have reported almost no fresh activity, with one seller indicating that sizeable shredded scrap stocks remain unsold.
Freight rates have continued to move higher, supporting suppliers' asking prices despite weak demand. A Pakistani trader told SteelOrbis that, if disruptions in the Red Sea persist, import prices could move higher, while a normalization of the situation would likely soften freight rates and eventually put downward pressure on scrap prices. According to the source, the broader market outlook remains closely linked to geopolitical developments and their impact on shipping conditions.
Separately, market participants are also closely monitoring the EU's revised Waste Shipment Regulation and its potential implications for future scrap availability. From May 21, 2027, exports of non-hazardous waste from the EU to non-OECD countries will generally be prohibited unless the destination country is included on the EU's authorized list. Pakistan is among the countries that applied to continue receiving such material, while the European Commission opened a consultation on its draft list on September 18, with feedback accepted until October 16.
In Pakistan's domestic market, sentiment has remained weak and scrap purchasing has remained selective. Local scrap prices have been heard at around PKR 134,000-138,000/mt ($484-498/mt), broadly stable to slightly softer compared to last week, while rebar prices have been heard at around PKR 234,000-240,000/mt ($845-866/mt), somewhat firmer week on week. Mill activity has continued at reduced levels, as sluggish finished steel sales and ongoing financial pressure have kept producers cautious in replenishing raw materials. High energy costs and operational disruptions have also continued to weigh on purchasing decisions.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 277.07
