Trade activity in the import scrap market in Pakistan has continued at a slow pace, with sentiment subdued and limited traction overall. At the same time, offer prices have remained relatively stable while cargo availability has remained reduced, leading some buyers to adopt a more proactive stance ahead of the holiday break.
More specifically, this week most offers for ex-EU/UK shredded scrap in containers have remained at $355-360/mt CFR, the same as two weeks ago. Besides, according to sources, several deals are reported to have been signed at $353-355/mt CFR Qasim.
Notably, the recent IMF disbursement of $1.2 billion has provided some relief for the macroeconomic environment, leading to a moderate improvement in State Bank foreign exchange reserves. However, this positive development has not yet been translated into smoother market operations on the ground.
Furthermore, a severe nationwide transport strike continues to disrupt supply chains, significantly impacting cash flow and material movement across the steel sector. As a result, construction activity and downstream steel consumption remain subdued for now.
In this context, market participants expect a rebound in rebar demand once logistics normalize and transportation issues are resolved. Deferred projects are likely to resume, which could trigger a short-term pickup in buying interest.
At the same time, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 130,000/mt ($464/mt) ex-warehouse, mainly the same as two weeks. The tradable level for local 10-12 mm grade 60 rebar has increased by PKR 2,000/mt ($7/mt) to PKR 220,000/mt ($786/mt) ex-works over the past two weeks.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 280.02