- Ramadan slowdown continues to impact trade, cash flow
- Influx of Iranian material adds pressure on local steel prices
Shredded scrap offers from Europe to Pakistan dropped by $3-5/t w-o-w to $380-385/t CFR amid sluggish demand, while HMS stood at $360-365/t and fabrication scrap at $385-388/t. With Ramadan underway, market activity is expected to slow briefly before picking up for post-Eid arrivals.
BigMint’s assessment for European/UK-origin shredded stood at $380/tonne (t) CFR Qasim, down by $3/t w-o-w.
Fresh shredded EU offers touched $384-385/t CFR; on the other hand, deals were concluded lower at $380-382/t CFR.
As per market participants, Pakistani buyers prefer UAE scrap over EU material due to quicker transit. Shredded scrap interest remains weak at just above $380-385/t CFR, with buyers at $380 and sellers firm at $385. Domestic scrap prices increased by PKR 2,000-3,000/t ($7-11/t) to PKR 143,000-146,000/t ($512-522/t) ex-yard.
A 250 t LMS bales deal from Kuwait was concluded at $357/t CFR Qasim.
Around 5,000-6,000 t of European and UAE shredded and HMS mixed scrap was booked at $365-382/t on a CFR Qasim.
Current prices
- Rebar: PKR 245,000-246,000/t ($876-880/t)
- Billet: PKR 210,000-212,000/t ($751-758/t)
- Scrap: PKR 143,000-145,000/t ($511-519/t)
Rebar production in the major regions is currently running at around 45-50%.
A UK-based scrap yard owner noted that Pakistan’s market remains under pressure, with HMS heard at $358/t and shredded at $380/t from Europe. Meanwhile, offers from the UAE stand at $385/t for the same grade, though negotiations could bring it down to $380/t.
As per market insiders, slow sales kept the current unofficial rebar prices in Punjab at PKR 238,000-240,000/t ($851-859/t), with further rebate-adjusted rates at PKR 235,000-237,000/t ($841-848/t), while in Sindh, prices stand at PKR 237,000-239,000/t ($848-855/t), adjusted to PKR 234,000-236,000/t ($837-844/t) after rebate.
Other mills also are also following the trend, with bala (commercial billets) at PKR 187,000-188,000/t ($669-672/t), billets at PKR 205,000-210,000/t ($733-751/t), and scrap at PKR 142,000-145,000/t ($508-519/t).
Ship-breaking market: Gadani remains the third-largest shipbreaking market despite economic struggles, an IMF downgrade, and financial aid concerns. While Pakistan briefly secured a small LDT deal, activity has stalled due to sluggish demand and decade-low sales. India’s weakening recycling market may push Pakistan to second place, but challenges persist as steel plate prices drop $11/t and the PKR depreciates. Recent deals include two handy-sized vessels at $440/LDT and a 2,000-t container vessel at $415/LDT, with no new tonnage reported at Gadani since last week.
Pakistan in talks with Russia to build a modern steel plant at the defunct Pakistan Steel Mills (PSM). Minister Rana Tanveer Hussain will visit Moscow, while a Russian delegation will explore investment opportunities. The government plans to dismantle PSM, allocating 700 acres for the new plant and the rest for an industrial park.
Russian experts recently assessed PSM for modernisation. Pakistan, under IMF-led reforms, aims to privatise loss-making firms, with PSM–a key focus due to its $800 million losses. Russia’s support is seen as crucial for revival.
Pakistan and Russia are deepening ties through energy and infrastructure projects, including Russian crude and LPG imports, the Pakistan Stream gas pipeline, and Quetta-Taftan railway modernization.
Outlook: With Ramadan slowing trade, scrap demand remains weak, keeping prices under pressure. Rebar sales show slight improvement but remain credit-driven, straining cash flow.
The continued influx of Iranian material adds further pressure on local prices. Meanwhile, the IMF talks to unlock $1.1 billion bring cautious optimism, while FDI sentiment stays positive with new infrastructure projects. Though the USD deficit persists, customers and banks are managing to sustain minimum operations.
Article From bigmint
