- Many melting units in Lahore, Gujranwala shut due to Ramadan
- Rising material costs, high taxes weigh on construction sector
Pakistan’s imported ferrous scrap market remains sluggish this Ramadan, in stark contrast to last year. The UK/EU-origin offers stand at $385-390/t CFR Qasim, with bids at $378-380/t — a widened spread and weak buying sentiment.
Over the weekend, inquiries improved slightly as shredded offers climbed to $385-395/t, supported by rising freight costs and currency fluctuations.
In the steel market, many melting units in Lahore and Gujranwala are shut due to Ramadan, with further slowdowns expected ahead of Eid holidays towards the end of the month.
BigMint’s assessment for European/UK-origin shredded stood at $381/tonne (t) CFR Qasim, up by $1/t w-o-w.
Around 4,000-5,000 t of European and UAE shredded and HMS mixed scrap was booked at $368-385/t CFR Qasim.
Market updates
A Lahore-based trader informed that mills are running at 50% capacity, prioritising maintenance over new purchases. Local scrap prices have dropped to PKR 140,000/t ($500), while rebar stands at PKR 245,000/t ($875). Payment challenges kept buyers cautious, limiting trade activity despite firm supplier offers. Overall, market sentiment remained subdued with minimal buying interest.
A Karachi-based trader noted that UAE shredded stood at $390/t, fabrication scrap at $380/t, and HMS at $360/t. Local scrap hovered around PKR 142,000-143,000/t ($505-510/t), while rebar was at PKR 245,000-250,000/t ($870-890/t). No major changes are expected in the near term.
As per a mill official, “Around Ramadan, the market slows down as most mills operate at 50% capacity, focusing on maintenance. Payment delays are common, and with sufficient local scrap availability, buyers are reluctant to take on more liabilities.”
A Karachi-based mill owner said,”Local scrap prices have dropped to PKR 140,000/t ($500/t), while rebar is trading at PKR 240,000-242,000/t ($857-865/t). Imported shredded scrap remains firm, with UAE offers at $385-388/t and UK/EU at $385/t. We recently booked 1,000 t of EU shredded at $385/t CFR Qasim.”
As per a European yardside market insider, UK/EU suppliers expect prices to rise following the US market, but weak demand in India, Pakistan, and Bangladesh makes this unlikely.
Rebar prices range from PKR 238,000-244,000/t ($845-865/t), varying by payment terms.
Pakistan’s construction sector struggles
Rising material costs, high taxes, and limited financing have stalled Pakistan’s construction sector, shifting investment abroad and reducing jobs, said S.M. Nabeel, Chairman North, ABAD.
Steel prices surged from PKR 126,000/t ($450) in 2020 to PKR 246,000/t ($880) in 2025, while cement rose from PKR 11,060/t ($39) to PKR 27,000/t ($97), worsening affordability. ABAD urges lower transaction taxes (from 11-14% to 4-4.5%) and long-term mortgage solutions.
With a 10-12 million housing deficit, the sector, running at 30-40% capacity, needs government support through reforms and incentives to unlock a $200 billion market and drive GDP growth.
Outlook
Though weak government support continues to weigh on sentiment. Traders anticipate a post-Eid demand recovery, with major purchases expected in May as market trends become clearer. However, the local market remains muted, with higher material costs potentially spurring activity in the near term.
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