The domestic prices of steel products have slid below the Rs. 220,000 per ton mark due to a drop in the cost of raw materials in the international market.
Domestic steel producer Aisha Steels Limited (ASL) announced a big decrease in the prices of Cold Rolled Coil (CRC) and Hot Dipped Galvanized Coil (HDGC) by Rs. 12,000 per ton on Thursday, according to JS Research. Effective from 10 November 2022, the new prices now stand at Rs. 209,550 per ton and Rs. 216,900 per ton, respectively.
Input costs for different industries have skyrocketed since 2020, owing to rising raw material costs (such as coal, fuel/power, and steel scrap) and the costs involved in importing them from abroad. However, when the currency is stable, the cost of raw material imports becomes cheaper, decreasing the overall cost of inputs.
Today’s decrease in steel prices is likely due to the cost of scrap coming down in addition to the retardation in domestic demand as the country reels from an assortment of flood aftershocks, and political, geopolitical, and economic bottlenecks.
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