Pakistan: Imported ferrous scrap offers fall by $2/t w-o-w as steel market remains sluggish

Pakistan's imported ferrous scrap prices fell by $2/t over the past week as market activity remained subdued. Offers for shredded scrap dropped to $422-423/t, reflecting a slowdown in demand. Steel production is down as mills hold back on manufacturing due to weakened demand from end users and construction projects.

Buyer sentiment indicates a slowdown in imported scrap bookings, with steel demand expected to remain weak for at least the next three to four weeks.

HMS from the UAE is being offered at $420-422/t, while PNS from the UAE is at $428-430/t. Both have seen a slight w-o-w increase due to tight supply from the Middle East.

A steel mill official said, "The imported scrap market is quiet. People are opting for local scrap because it is cheaper, and purchases are mainly for immediate needs."

BigMint's assessment of Europe-origin shredded scrap stood at $423/t, down by 2/t w-o-w.

Around 2,000-3,000 t of shredded and PNS scrap from the UK and Europe were booked at $423-428/t CFR Qasim in the last seven days.

Domestic market: In the domestic market, average rebar offers were heard at around PKR 248,000-253,000/t. Demand for finished products remained weak. Indicative offers for domestic scrap were heard at PKR 155,000-157,000/t exw levels whereas CC billet is priced at PKR 216,000-PKR 218,000/t.

A steel mill representative said, "The market is extremely quiet. Buyers are not actively importing due to very weak demand in the steel market, which is prompting mills to reduce production."

A representative from a major trading house noted that domestic steel production is likely to remain on a downward trend this quarter. The imported scrap market in Pakistan is still quiet, with little sign of change in demand, especially as the budget month approaches. Production cuts from major mills are impacting the market, with many mills already shut down and only a few remaining operational.

Outlook: Market observers suggest that customer restocking may occur at current price levels this week. However, if India continues to offer higher prices for imported scrap, Pakistan may need to compete more aggressively to secure significant volumes. This could lead to price fluctuations as Pakistan's mills attempt to attract suppliers while balancing production costs.