Pakistan’s import scrap market has remained under downward pressure over the past week, with sentiment weakening further as buyers have continued to push for lower levels. The correction has been supported by subdued finished steel demand, pressure on local scrap and rebar prices, and expectations that a normalization of UAE supply could add further downside pressure in the short term. Although some fresh ex-UK/EU bookings have been reported, overall buying has remained cautious and largely price-driven.
In detail, ex-UK/EU shredded scrap has been sold at $400/mt CFR Qasim this week for August-arrival cargoes, down from around $413/mt CFR Qasim reported last week. According to market sources, offers are now reported at $398-400/mt CFR Qasim, compared to $413-415/mt CFR and above heard last week. At the same time, Pakistani buyers’ bids have been voiced at around $395/mt CFR, indicating that mills are still pushing for further discounts. “I have been buying shredded at $400/mt CFR and I believe the market is coming back to where it was before the war [in the Middle East] situation,” a market insider told SteelOrbis. Another source said buyers still believe prices have further room for correction, especially as local scrap and finished steel prices have already moved down. As a result, the current workable range for ex-UK/EU shredded scrap is assessed at around $395-400/mt CFR Qasim, depending on cargo size, shipment timing and payment terms.
As for ex-UAE material, no fresh confirmed offers or deals have been reported in the Pakistani market this week. However, market sources have indicated that, once UAE supplies become more stable, Pakistani buyers expect import scrap prices to face additional downward pressure.
In the Pakistani domestic market, sentiment has remained weak, with subdued finished steel sales continuing to weigh on import scrap buying interest. Local scrap equivalent to shredded has been heard at PKR 140,000-145,000/mt ($502-520/mt) ex-warehouse, in line with the range reported last week. Meanwhile, local 10-12 mm grade 60 rebar prices have been heard at PKR 238,000-242,000/mt ($854-869/mt) ex-works, down from PKR 245,000-253,000/mt ($879-908/mt) ex-works last week. “Rebar sales are also under pressure,” a Pakistani trader told SteelOrbis, adding that softer finished steel prices and cautious demand are limiting buyers’ appetite for imported scrap.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.60
