Steel prices rise in Pakistan – December Update 2023

In a noteworthy development, domestic steel prices in Pakistan have once again experienced a substantial increase, posing challenges for the construction and infrastructure sectors.

Announced by domestic steel producers on Tuesday, the surge affects the prices of Cold Rolled Coil (CRC) and Hot Dipped Galvanized Coil (HDGC), both rising 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 climbed to Rs. 265,800 per ton. This surge follows the recent trend of escalating steel prices, with steel rebar witnessing a cumulative uptick of Rs. 12,000 per ton since October 31, reaching Rs. 266,000-272,000 today.

According to JS Research, the increase in steel prices can be attributed to various factors, with potential risks, including unforeseen disruptions in the procurement of raw materials. Industry experts suggest that the continuous rise in steel prices may pose challenges for the construction and infrastructure sectors in the country.

Notably, the property and infrastructure segments constitute a significant portion of the 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 impede developments in the sector.