The domestic prices of steel products have spiked for the sixth time since December 2022, as procuring raw materials is becoming increasingly difficult due to import restrictions.
Domestic steel producer Agha Steel Industries Limited (PSX: AGHA) increased the prices of its steel rebars by Rs. 8,000 per metric ton effective January 16, 2023. Retail prices now stand in the range of Rs. 240,000-243,500 per ton.
While official announcements are pending, our channel checks have confirmed that similar announcements by other companies will also follow.
The rate of galvanized sheets or cold rolled sheets has been increased by Rs. 14,000 to Rs. 280,000 per ton, while some dealers have even suggested that Faizan Steel raised the 16mm-25mm rate to Rs. 240,500 per ton and Rs. 242,500 for its 10mm-12mm product.
Another dealer said AGHA hiked the 16mm-32mm rate to Rs. 241,500 and the 10mm-12 mm to Rs. 243,500.
Pertinently since December 2022, manufacturers have raised the prices of steel products by around Rs. 33,000 mainly due to fear of a shortage of raw materials amid restrictions on imports.
During the current fiscal year, the country’s import of iron and steel scrap fell by 36 percent in quantity and 38 percent in value to one million tons ($605 million) versus 1.7 million tons ($978 million). The average per tonne (APT) price of imported scrap was $563 in July-December 2022-23, compared to $579 in the previous fiscal year.
Dealers have urged the central bank and the finance minister to assist the struggling steel industry by ensuring the timely opening of letters of credit or risk industry stoppage.
DAKOOs are on our heads. Don’t expect anything from them. Lootairaz, money Launderers , whatever they will do, they will do for their interest.