Steel prices in Pakistan have seen a considerable increase, impacting the construction and infrastructure industries.
Domestic steel producers announced a significant surge, raising prices of Cold Rolled Coil (CRC) and Hot Dipped Galvanized Coil (HDGC) by Rs. 5,000 per ton, effective from December 26, 2023. The revised price for 1 mm CRC is now Rs. 256,450 per ton, while HDGC has reached Rs. 265,800 per ton.
This follows the recent trend of rising steel prices, with steel rebar experiencing a cumulative increase of Rs. 12,000 per ton since October 31, reaching Rs. 266,000-272,000 today.
JS Research suggests that the surge in steel prices may be attributed to various factors, including potential risks associated with unforeseen disruptions in raw material procurement. Industry experts express concern that the continuous rise in steel prices might pose challenges for the construction and infrastructure sectors in the country.
It’s important to note that the property and infrastructure segments play a significant role in driving demand in Pakistan’s steel sector. However, with the slowdown in infrastructure stimulus and minimal growth in the property market, the recent upward revision in steel rates is expected to further hinder developments in the sector.
