Steel Industry Barely Surviving on Copper Exports to China

Many steel manufacturers are turning to non-ferrous (copper, etc) exports to China to sustain their businesses which have been struggling due to smuggling, mis-declaration, and poor demand. This shift has propelled the non-ferrous sector to become the fifth largest exporter that shipped $1.35 billion worth of items in the fiscal year 2023-24, according to Pakistan Association of Large Steel Producers (PALSP) Secretary General Syed Wajid Bukhari. Bukhari warned that if smuggling continues to persist it could severely hamper the export of copper products and jeopardize the survival of these businesses. PALSP wrote to Finance Minister Muhammad Aurangzeb about this issue and highlighted the dire situation facing the steel industry. Bukhari said numerous steel mills have already ceased operations, while those still operational are functioning at a fraction of their capacities. With construction activity stagnating due to the economic downturn, steel demand has plummeted to unprecedented levels. He underscored that steel smuggling will worsen both the steel sector and the broader economy.