Pakistan: Imported scrap prices slightly firm amid weak demand and limited buying

• 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 sentiment subdued as mills continued to resist higher offer levels amid poor downstream demand. Shredded scrap offers were heard at $425-430/t CFR, while workable levels stayed lower, with trades reported below $420/t, highlighting a persistent bid-offer gap.

Weak demand keeps mills cautious

Buying interest remained limited, with mills indicating bids around $420-422/t against seller expectations above $425/t. Capacity utilisation dropped to 25-30%, reflecting slow steel sales and weak construction activity, keeping procurement strictly need-based.

Recent deals concluded

• UK/EU-origin NTP (500 t and 2,000 t) sold at $425-427/t CFR Qasim
  
  
• UK-origin shredded (1,000 t lots) concluded at $425-427/t, with another cargo heard at $428/t CFR Qasim
  
  
• Malaysia-origin busheling (500-1,000 t) sold at $430-443/t CFR Karachi/Qasim
  
  
• Malaysia-origin PNS (250 t) sold at $412/t CFR Karachi
  
  
• Canada-origin PNS (500 t) at $425/t CFR Qasim
  
  

Offers and bids

• Seller offers: $427-430/t
  
  
• Buyer bids: $420-422/t
  
  

Domestic market

Domestic conditions remained weak, with local scrap stable at PKR 150,000-160,000/t ($538-574/t), billet at PKR 210,000-220,000/t ($753-789/t), and rebar at PKR 240,000-245,000/t ($861-879/t). Low capacity utilisation and subdued demand continued to pressure margins.

Outlook

The market is expected to remain under pressure in the near term, with mills maintaining cautious buying amid weak demand. Some improvement may be seen if fresh offers emerge next week, but overall sentiment is likely to stay subdued.