Steel Prices in Pakistan See Another Big Increase

The domestic prices of steel products have been increased by Rs. 5,000 to rise up to Rs. 265,800 per ton. Domestic steel producers announced an increase in the prices of Cold Rolled Coil (CRC) and Hot Dipped Galvanized Coil (HDGC) by Rs. 5,000 per ton on Tuesday, according to JS Research. Effective from 26 December 2023, the new price for 1 mm CRC is Rs. 256,450 per ton, and Rs. 265,800 per ton for HDGC. The upside risks to today’s increase in steel prices could be any unexpected disruptions in the procurement of raw materials. Notably, steel rebar prices saw a cumulative uptick of Rs. 12,000 per ton from Rs. 259,000-264,000 on October 31 to Rs. 266,000-272,000 today. 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. Today’s upward revision in steel rates may further slow any developments in the sector.