Pakistan’s import scrap market has weakened further over the past week, with trading activity remaining limited despite expectations of an improvement following the announcement of the federal budget for 2026-27. Buyers are expecting further price corrections amid lower fuel costs and easing geopolitical tensions.
More specifically, ex-UK/EU shredded scrap offers have been heard at around $415/mt CFR Qasim this week, down by around $5-10/mt from $420-425/mt CFR Qasim heard last week. According to sources, since late last week transactions for European shredded have been reported at $415-417/mt CFR (-$3/mt over the week), and, after touching $415/mt CFR in a contract last Saturday, buyers have been pushing for $410-414/mt CFR.
Meanwhile, workable levels for ex-Sweden shredded scrap have been reported at $420-425/mt CFR Qasim, indicating a $3-5/mt decline.
Sources indicate that buyers are expecting additional corrections in import scrap prices, supported by lower fuel prices and hopes for a resolution of geopolitical tensions in the Middle East. At the same time, market participants believe that any meaningful recovery in buying activity will depend on greater stability in the region. “Actual improvement will be reflected once the war settles down,” a market insider told SteelOrbis.
Meanwhile, in the Pakistani domestic market, sentiment has improved slightly following the announcement of the federal budget, with market participants expecting stronger construction activity in the coming weeks. However, actual demand remains weak for now, while mills continue to purchase raw materials only for immediate requirements. Local scrap prices equivalent to shredded have been heard at PKR 152,000-156,000/mt ($546-561/mt) ex-warehouse, up from PKR 147,000-150,000/mt ($528-539/mt) ex-warehouse two weeks ago. Meanwhile, local 10-12 mm grade 60 rebar prices have been heard at PKR 245,000-248,000/mt ($880-891/mt) ex-works, mainly stable compared to PKR 245,000-247,000/mt ($880-887/mt) ex-works reported two weeks ago.
“Things are improving a bit, but the market still needs more clarity before any real pickup in buying activity,” a source in the market told SteelOrbis.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.00
