Pakistan’s import of iron and steel scrap surged to a record 381,991 tonnes in October, reflecting increased activity in construction and steel production. This is the highest monthly volume ever recorded and surpasses the previous peak of 366,610 tonnes in September, according to official data.
Industry experts say the spike is due to renewed work on stalled high-rise and housing projects. Growing demand for steel bars also contributed, despite falling global scrap prices.
During the first four months of FY26, Pakistan imported 1.299 million tonnes of iron and steel scrap valued at $680 million. This compares with 819,650 tonnes worth $664 million in the same period last year. The quantity represents a 58.5% increase, while the value rose by 2.4%. However, the average import price per tonne fell sharply from $810 to $523.
The Secretary General of the Pakistan Association of Large Steel Producers said the surge in steel demand is genuine and driven by construction activity, not just lower global scrap prices. He noted that government initiatives, including the upcoming Apna Ghar Apna Ashiana low-cost housing scheme, are boosting demand for construction materials.
Builders added that the decline in global scrap prices has lowered domestic rebar costs. Current market prices are around Rs220,000 per tonne, below the government-assessed minimum of Rs242,000 per tonne for tax purposes. This provides relief to contractors while supporting ongoing projects.
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Analysts expect the demand for iron and steel scrap to remain strong as construction activity continues. The record imports signal a positive outlook for Pakistan’s construction sector and related industries, despite global price fluctuations.
