en.Wedoany.com Reported - Pakistan's imported scrap steel market remained under pressure in the week ending June 9, 2026. Although several container scrap steel transactions were completed, overall trading momentum was weak as buyers generally adopted a wait-and-see attitude ahead of the federal budget announcement. BigMint's assessment data shows that the price of European-origin shredded scrap was approximately CFR Qasim $417/ton, down slightly by about $3/ton week-on-week.
Offers for imported shredded scrap from the UK and Europe were heard at CFR Port Qasim $420-425/ton, while bids fell by about $5-6/ton from previous intentions to $412-415/ton. Despite relatively firm offer levels, concluded transactions indicate sustained buyer resistance, with actual negotiations taking place at lower levels.
A local importer source said buyers only become active when prices are attractive, while higher offers still face significant resistance. After prolonged negotiations, only a few transactions were concluded in the market, reflecting buyers' general pursuit of price discounts amid weak finished steel demand.
Domestic steel prices showed a downward trend. A Karachi mill source said finished steel demand remained sluggish, with buyers limiting purchases to immediate needs due to uncertainty over future fiscal measures. Although raw material costs were relatively stable, including local scrap prices at PKR 155,000-160,000/ton ($557-575/ton), low-grade scrap at PKR 144,000/ton ($518/ton), Bala scrap at PKR 200,000-205,000/ton ($719-737/ton), and domestic billet at PKR 215,000-216,000/ton ($773-776/ton), mills largely maintained Grade 60 rebar prices at PKR 238,000-245,000/ton ($856-881/ton).
Sales and capacity utilization remain under pressure. Industry participants said current company sales are about 40% of normal levels, while capacity utilization remains at 35-40%, highlighting weak market demand and limited production activity. A Peshawar trader noted that market activity was largely quiet during the holiday period, with most buyers only entering the market to meet immediate needs, few spot transactions concluded, and participants tending to wait for clearer market direction before making new purchases.
Market participants expect imported scrap buying interest to improve as businesses resume operations after the holidays. However, uncertainty over the upcoming federal budget and continued weakness in finished steel demand are expected to keep purchases largely need-based. A Karachi mill source said inquiries have started to increase as customers return to the market, but buyers remain reluctant to build inventories, with most participants awaiting clearer information on fiscal measures and their potential impact on construction activity before establishing larger positions. Market sentiment remains cautious, with traders closely monitoring international scrap price trends and domestic steel industry dynamics. Although trading activity is expected to improve, any significant increase in import bookings will depend on stronger steel demand and improved end-user confidence.
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