In a significant development, domestic steel prices have witnessed a substantial reduction of Rs. 17,000 per ton. This price adjustment comes as a direct response to dwindling demand in Pakistan’s construction sector, which is currently experiencing sluggish trends.
Key players in the domestic steel production, namely International Steels Limited (ISL) and Aisha Steel Mills Limited (ASL), have announced a substantial price cut for two of their prominent products, Cold Rolled Coil (CRC) and Hot Dipped Galvanized Coil (HDGC). According to data from JS Research, this price reduction, amounting to Rs. 17,000 per ton, took effect on Wednesday, October 11, 2023. The revised prices now stand at Rs. 244,500 per ton for 1 mm CRC and Rs. 253,800 per ton for HDGC.
This price adjustment is a result of a noticeable decline in demand, which is unusual for the typically active construction season in Pakistan during September and October. It is anticipated that further price cuts may be on the horizon as Pakistan heads into the pre-winter season. Notably, the recent strengthening of the rupee against the US dollar by nearly Rs. 60 since September 4, 2023, has had a direct impact on the falling steel product prices in the country.
The construction and property sectors have traditionally been the driving force behind the demand for steel products in Pakistan. However, the infrastructure stimulus has slowed down, and the property market is displaying minimal growth. These factors, coupled with the current economic conditions, led to a reduction in steel prices, which expected to have a significant impact on the market.
In a nutshell, the domestic steel industry is witnessing a substantial drop in prices due to reduced demand, reflecting the challenges faced by Pakistan’s construction and infrastructure sectors, as well as the impact of the currency exchange rate. This price adjustment expected to influence the dynamics of the steel market in the coming months.
