Pakistan: Imported scrap prices edge up; limiting mill buying amid weak demand

• Shredded offers firm, bids lag amid weak demand
  
  
• Select deals done, but mills stay largely inactive
  
  

Pakistan's imported ferrous scrap market remained weak and largely inactive, with mills staying cautious amid subdued downstream demand. Shredded scrap offers were heard higher at $425-430/t CFR, while workable levels remained below $420/t. Malaysian-origin offers continued to hover around $435/t CFR, broadly in line with early April levels, with mills largely staying on the sidelines and waiting for a price correction.

Weak demand keeps mills cautious

Buying interest remained limited, with mills indicating bids around $420-422/t against seller expectations above $428/t. Capacity utilisation dropped to 30%, reflecting slow steel sales and weak construction activity, keeping procurement strictly need-based.

A trader said, "This week has been particularly slow with limited activity across the market. We expect some offers to emerge next week. Pakistani mills are currently indicating buying interest around $420/t for shredded scrap."

Another supplier source said, "Seller offers are hovering around $427-430/t, while buyers are still holding back at $420-422/t, keeping the bid-offer gap intact."

Recent deals

• Around 2,000 t of UK-origin shredded booked at $425-428/t CFR Qasim.
  
  
• Around 1,000 t of UK/EU-origin NTP booked at $425-427/t CFR Qasim.
  
  
• Around 1,500 t of Malaysia-origin busheling booked at $430-443/t CFR Karachi/Qasim.
  
  
• Around 500 t of Canada-origin PNS booked at $425/t CFR Qasim.
  
  

Domestic market

Domestic conditions remained weak, with local scrap stable at PKR 150,000-156,000/t ($538-560/t), billet at PKR 215,000-220,000/t ($771-789/t), and rebar at PKR 244,000-250,000/t ($875-897/t). Low capacity utilisation and subdued demand continued to pressure margins.

Outlook

The market is expected to remain under pressure in the coming days, with mills maintaining cautious buying amid weak demand. While some improvement may emerge if fresh offers come in over the next few days, overall sentiment is likely to stay subdued, with mills continuing in a wait-and-watch mode and limiting purchases to immediate requirements. Most mills are currently operating at reduced capacity, although LC-related issues remain largely manageable.