The domestic prices of steel products have been slashed by Rs. 17,000 per ton mark as the market reacts to depleting demand amid meager trends observed in the country’s construction sector.
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. 17,000 per ton on Wednesday, according to JS Research. Effective from 11 October 2023, the new price for 1 mm CRC is Rs. 244,500 per ton, and Rs. 253,800 per ton for HDGC.
Disappointing demand in what is normally a good construction season during September-October kicked off the decline, with more cuts expected as Pakistan plays through pre-winter. The massive recovery of the rupee/$ rate by nearly Rs. 60 since 4 September 2023 is reflected in steel product prices falling this week.
Overall, 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.
Source: Pro Pakistani