Pakistan’s major mills kept their rebar prices high to maintain adequate liquidity to line up higher operational costs. Political uncertainties and the ongoing currency crisis pushed steel mills to raise prices to ensure smooth production.
The country’s steel majors like Mughal Steel and Amreli Steels raised their rebar offers by PKR 10,000/t ($43/t) towards the weekend. Current offers for G-60 grade rebar (10-12 mm) are at PKR 255,000-260,000/t exw-Punjab ($1101-1123-/t), including taxes, effective 20 January, 2023.
Due to shortage of raw materials, and keeping in view the current economic condition in Pakistan, the steel companies have revised their rebar prices.
Our assessment for G-60 (10-12 mm) is at PKR 255,000/t ($1,101/t), moving considerably higher by PKR 10,000/t ($43/t) w-o-w. Prices have hit an all-time high, as per SteelMint.
Prices are likely to remain quite high considering the current economic situation. The industry is under threat of closure in the near term due to insufficient foreign currency.
Local scrap prices continue to rise: Domestic scrap prices are also hovering at a high level due to tight supplies. Fresh offers for local scrap are at PKR 160,000-170,000/t ($691-734/t) exy-Punjab, up PKR 5,000-10,000/t ($22-43/t) w-o-w.
The PKR declined further to 231.3 against the dollar, as compared to 228.8 recorded a week ago.
Pakistan domestic prices
Zero scrap imports
The imported scrap market remained muted for yet another week. The ongoing currency crisis has impacted the steel industry severely. The government has restricted the opening of any new LC except for essential items.
The country experienced a massive power outage early on Monday due to the failure in its national electricity grid. Power was out in all of the country’s major cities, including Karachi, Islamabad, Lahore and Peshawar, the country’s energy ministry confirmed.
Industry experts believe that major mills have material in hand but are only able to continue their work gradually. However, if the LC issue is not resolved, the industry will continue to suffer.
SteelMint’s assessment for import shredded scrap in container stands at $460/t CFR, stable w-o-w.
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