Steel Prices Slashed by Rs. 25,000 Per Ton

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The domestic prices of steel products have dipped by Rs. 25,000 per ton mark due to a sudden drop in the cost of raw materials in the international market.

Domestic steel producers — International Steels Limited (ISL) and Aisha Steel Mills Limited (ASL) — announced a big decrease in the prices of Cold Rolled Coil (CRC) and Hot Dipped Galvanized Coil (HDGC) by Rs. 25,000 per ton on Monday, according to JS Research. Effective from 10 July 2023, the new price for 1 mm CRC is Rs. 264,550 per ton, and Rs. 273,900 per ton for HDGC.

Deputy Head of Research at JS Global, Waqas Ghani, told ProPakistani, “One of the main factors contributing to the current decrease in prices is the decline in international HRC (Hot Rolled Coil) prices. Since reaching its peak in March 2023, the prices have fallen by US$130 per ton”.

Disappointing demand in what is normally the peak construction season during June and July also kicked off the decline, further reflected in steel rebar falling last week, with more cuts expected as Pakistan plays through the tough summer months.

Lately, the construction industry has been struggling with pricing its housing units due to massive hikes in project completion costs, with steel prices increasing significantly in FY2022-23 alone.

Property and infrastructure account for a big chunk of demand in Pakistan’s stagnating steel sector but infrastructure stimulus has slowed and the property market is showing little growth with taxes under Budget 2023-24 tipped to make things more difficult.

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