The Karachi steel scrap market is experiencing high trading volumes as we enter Q2 2026. Local re-rolling mills in both Sindh and Punjab are actively securing inventory to fulfill massive orders tied to renewed infrastructure momentum and national housing initiatives.
Despite global supply chain fluctuations, domestic demand remains the primary driver, though rising energy costs continue to put pressure on local processing margins.
Current Scrap Rates (Karachi — April 2026):
HMS 1&2 (80:20): PKR 205,000 – 245,000 / Ton
Shredded Scrap: PKR 215,000 – 255,000 / Ton
Aluminum Extrusion: PKR 460,000 – 540,000 / Ton
Copper Bare Bright: PKR 2,900,000 – 3,400,000 / Ton
(Prices are indicative and vary based on lot size and delivery terms.)
Market Drivers:
Infrastructure Momentum: Increased steel consumption driven by the acceleration of CPEC Phase-II projects, including highways and industrial zones.
Post-Flood Reconstruction: Sustained demand from large-scale provincial reconstruction programs and government-backed housing schemes.
Import Dynamics: Continued reliance on imported scrap, which remains sensitive to international freight rates and the PKR/USD exchange stability.
Energy Costs: High electricity tariffs are forcing mills to favor high-yield heavy scrap (HMS) to optimize furnace efficiency.
Outlook:
The market is expected to remain bullish through May 2026. With local inventory levels tightening, we recommend industrial buyers secure their requirements early to avoid the anticipated price hikes in the latter half of the quarter.
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