Pakistan: Shredded scrap import prices drop $9/t w-o-w as buyers stay on the sidelines

• Weak steel demand keeps mill utilisation at around 40%
  
  
• Buyers remain cautious about post-Muharram purchases
  
  

Pakistan's imported shredded scrap market remained subdued in the week ended 30 June, as the Muharram holidays, weak finished steel demand, and cautious mill sentiment continued to restrict trading activity. Market activity remained largely at a standstill during the holiday period, with buyers postponing fresh bookings until markets reopen.

BigMint assessed Europe-origin shredded scrap at around $402/t CFR Qasim on 30 June 2026, down by around $9/t w-o-w.

As per market sources, earlier deals concluded at $401-405/t CFR were not viewed as representative of prevailing market conditions, with traders suggesting they likely involved previously loaded cargoes rather than fresh transactions. Current shredded scrap offers were heard at $405-410/t CFR Qasim, while some suppliers indicated workable levels closer to $410-412/t CFR. Buyers, however, continued targeting around $400/t CFR, leaving negotiations largely at a standstill.

Trades during 24-30 June

• UK-origin loaded shredded scrap: 2,000 t booked at $410-412/t CFR Qasim
  
  
• UK-origin shredded scrap: 1,000 t booked at $401/t CFR Qasim
  
  
• UK/EU-origin shredded scrap: 2,000 t booked at $402/t CFR Qasim
  
  

A Karachi-based mill-side source said, "Buyers remained in a wait-and-watch mode following the recent federal budget and were expecting import clearances to normalise next week before re-entering the market. Mills also preferred to defer purchases amid weak downstream steel demand and comfortable inventory levels."

According to a representative of an international trading house, buyers are currently adopting a wait-and-watch approach, with limited appetite for fresh bookings. Market participants expect buying activity to improve next week as post-budget clearances begin to materialise. The source added that a 1,000-t UK-origin shredded loaded scrap cargo was recently concluded at around $412/t CFR Qasim, while most Pakistani buyers are currently targeting booking levels closer to $400/t CFR, limiting sellers' ability to conclude higher-priced deals.

Domestic market fundamentals also remained weak. Local prime scrap prices were assessed at PKR 152,000-154,000/t ($546-554/t), while lower-grade scrap traded at PKR 144,000-145,000/t ($518-521/t). Imported scrap continued to compete against relatively stable domestic steel prices, with continuous-cast billet heard at PKR 210,000-215,000/t ($755-773/t), Bala billet at PKR 195,000-200,000/t ($701-719/t), and Grade-60 rebar at PKR 240,000-242,000/t ($863-870/t) exw.

Steelmakers continued to operate at around 40% capacity utilisation, with sales remaining subdued due to weak construction activity and sluggish finished steel demand.

Outlook

Pakistan's imported shredded scrap market is expected to remain cautious in the coming week as mills gradually return after the Muharram holidays. Buying activity may improve as post-budget import clearances resume, but procurement is likely to remain need-based while buyers continue targeting around $400/t CFR. Unless finished steel demand strengthens and mill utilisation improves, the gap between buyers' bids and sellers' offers is expected to keep trading activity limited.