Pakistan’s import scrap market has moved up over the past week, supported by sellers' firmer targets and recent bookings at higher levels, though buyers have remained cautious and have continued to purchase only according to immediate needs. Market sentiments have remained mixed, as import prices have found support from stronger demand for some origins and tighter regional availability, while weak downstream steel demand and uncertainty linked to the broader regional situation have continued to limit buying activity.
More specifically, bids for ex-EU shredded scrap were voiced at $422/mt CFR earlier this week, while recent workable levels for ex-EU shredded scrap have been reported at $420-425/mt CFR, broadly close to the levels heard last week.
Meanwhile, ex-UK shredded scrap has been offered at $425-430/mt CFR, up from $420-425/mt CFR heard last week. According to sources, UK-origin shredded scrap has been sold at $425-428/mt CFR Qasim, while a deal for ex-EU shredded scrap is reported to have been signed at $426/mt CFR. At the same time, ex-EU/UK NTP scrap has been sold at $425-427/mt CFR this week. Overall, the workable price range for ex-EU/UK shredded scrap has moved to around $420-425/mt CFR Qasim, while offers have mostly been heard at $425-430/mt CFR.
“There has been talk that European and UK sellers have been giving priority to Turkey and Pakistan, where prices have been stronger, limiting the availability of some grades for Indian buyers,” a Pakistani trader told SteelOrbis.
Market sources have also indicated that continued uncertainty in the Middle East has added some pressure to import sentiment, with higher freight and energy costs and tighter shipping conditions limiting sellers’ flexibility in negotiations.
“Buyers are purchasing only to meet immediate needs, remaining very cautious and are closely monitoring the current situation, as any wrong move could result in significant losses,” a market insider told SteelOrbis.
In the meantime, Malaysian origin material has also been present in the market. According to sources, ex-Malaysia busheling scrap has been booked at $445/mt CFR this week. Market participants have indicated that the higher levels are still mainly linked to shorter transit times and selective restocking requirements.
Meanwhile, in the Pakistani domestic market, activity has remained subdued, with mills avoiding aggressive procurement amid weak finished steel demand. According to market sources, local 10-12 mm grade 60 rebar prices have been heard at around PKR 245,000/mt ($879/mt) ex-works, down from around PKR 260,000/mt ($932/mt) ex-works heard last week. At the same time, local scrap prices equivalent to shredded have been reported at around PKR 160,000/mt ($574/mt) ex-warehouse, mainly stable compared to last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.61
