Local manufacturers increase steel prices

Javed Mirza Web Editor

20th Oct, 2021. 03:45 pm

KARACHI: The International Steels Limited (ISL) and Aisha Steel Mill (ASL) have increased Cold Rolled Coil (CRC) prices by Rs3,000/tonne, taking CRC prices to Rs243,000/tonne.

“The price increase comes as manufacturers look to pass on the increase in cost after hot rolled coil (HRC) prices increased 6 per cent in October 2021,” an analyst at AKD Securities said.

Rising local CRC price is directly related to jump in HRC prices in the international markets, amid global demand recovery post-vaccine drive and ongoing port congestion issues, especially in South Asia.

The former is indeed a significant factor in driving local prices, while the latter is turning out to be a major factor, as well since it is hurting CRC imports, enabling the local players to pass on the cost pressures easily.

CRC prices in the international market have been on a rising trend in the ongoing quarter, much higher than the HRC price. This is mainly on account of limited CRC imports in the backdrop of the ongoing supply constraints, which led to an increase in cost and freight, compelling local players to charge premium.

In the local market, a rapid recovery in the steel sector was witnessed after the decline in the Covid-19-related cases. The auto segment, in particular, exhibited a V-shaped recovery creating robust demand for CRC.

The construction sector also picked up, increasing demand for the galvanised products.

The domestic hot-rolled coil prices in China narrowed upward on Tuesday, October 19, with the market sentiment boosted by new production curbs in the country’s eastern region.