Pakistan’s Domestic Steel Prices Expected to Move Up Further Over Currency Depreciation – Sources

In recent conversations with market participants, SteelMint learned that although domestic steel markets in Pakistan have not reopened after holidays in full swing yet, participants are looking optimistic about prices for rebar, billet and domestic scrap. Last week after witnessing sharp currency depreciation market remained closed for Eid holidays and now activities are expected to resume back in a couple of days.

According to sources, steel prices in domestic markets are expected to move up by the range of PKR 3000-4000/MT (USD 25-33) owing to sharp depreciation of PKR against USD.

PKR stood 121.4 against USD today which was trading at 119.5 on 14th June, which has depreciated further by 1.6% in last one week’s time.

Usually, after Ramadan market turns favorable in Pakistan and purchases speed up for finish steel. Also, electricity supply cuts imposed during Ramadan resumes back in full-fledged and steelmakers turn positive for raw materials re-stocking and increased steel production.

Also, steel mills have turned positive for scrap bookings at almost stable prices in Pakistan.

Average fresh prices for local billet (Bala) are expected to reach PKR 79,000/MT (USD 651) levels. Similarly for grade 60 CC billet which was assessed at around PKR 81,500-82,000/MT before holidays is expected to reach PKR 85,000/MT (USD 700), ex-plant inclusive of taxes. Domestic scrap prices are expected to reach 58,500-59,500/MT (USD 482-490) levels.

Rebar prices in Punjab region assessed earlier at PKR 94,000-95,000/MT, ex-works are expected to attend PKR 97,000-98,000/MT (USD 798-806) levels. For Sindh region, rebar prices are expected to reach at PKR 99,000-100,000/MT (USD 815-823) levels as against PKR 96,500-97,500/MT levels before Eid holidays. All these prices are inclusive of taxes.

Pakistan average local steel expected prices as on 20th June –

Source: SteelMint Research