Pakistan’s import scrap market has weakened over the past week as buyers have continued to limit purchases ahead of the federal budget announcement. Though customers have started to return to the market, deals for scrap are possible only at discounts as mills are still cautious amid weak finished steel sales and reduced capacity utilization rates.
More specifically, ex-EU/UK shredded scrap offers have been stable over the past few weeks at $420-425/mt CFR Qasim, but the tradable level has moved lower, with buyers mostly targeting $415-418/mt CFR Qasim. According to sources, ex-EU/UK shredded scrap has been sold at around $418/mt CFR Qasim this week. “Buyers are not showing interest at current offer levels and are still pushing for lower prices,” a Pakistani market insider told SteelOrbis, adding that the market may move down further.
Meanwhile, high-priced offers have also been heard for other origins, with ex-Sweden shredded scrap offers reported at $425-428/mt CFR Qasim and ex-Malaysia material at around $435/mt CFR Qasim. However, buyers have remained focused on lower-priced ex-EU/UK cargoes, with the workable range now assessed at around $418-420/mt CFR Qasim, down by around $2-5/mt from last week’s reported levels.
As for ex-UAE material, market sources indicate that UAE origin cargoes are gradually returning to the Pakistani market after several weeks of limited availability. In particular, market sources have reported talk of ex-UAE sheared scrap being traded at around $420/mt CFR Pakistan, though the transaction has not been widely confirmed.
In the Pakistani domestic market, activity has remained weak, with mills continuing to limit raw material purchases to immediate requirements, amid slow finished steel sales and reduced utilization rates. Market sources said several mills are still operating below normal capacity, while liquidity pressure and weak downstream demand continue to weigh on production. At the same time, most participants are waiting for the announcement of the fiscal budget tomorrow, June 11, to assess its possible impact on steel prices, sales and construction activity. “Buying is limited to requirements for now, and the market is waiting for tomorrow’s fiscal budget to see its impact on rates and sales,” a Pakistani trader told SteelOrbis.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.80
