Steel prices in Pakistan have experienced a significant drop of Rs45,000 per ton, largely driven by a decrease in international raw material costs.
As of August 23, 2024, the updated prices for Cold Rolled Coil (CRC) are set at Rs211,500 per ton, while Hot Dipped Galvanized Coil (HDGC) is priced at Rs220,800 per ton.
This reduction in steel prices is further influenced by a slowdown in demand, particularly during the typically busy construction season in Pakistan. The lower demand has compounded the effects of declining raw material prices, leading to more affordable steel products.
In a related development, the Secretary of the Ministry of Industries and Production provided an update to the Standing Committee, revealing that Pakistan Steel Mills (PSM) has been officially classified as ‘scrap’. This designation underscores the severe challenges faced by the company, rendering its revival nearly impossible.
Consequently, the vast 19,000-acre land owned by PSM is slated for repurposing into Special Economic Zones (SEZs), aimed at boosting economic activity and industrial growth.
The committee also addressed various issues concerning the Utility Store Corporation (USC), including its operational challenges and performance.
Additionally, there were discussions about the taxes imposed on the industry by the federal government, particularly those introduced on July 27. The taxes have been a point of contention, raising concerns about their impact on the industry’s financial health and operational efficiency.
The sharp decline in steel prices, combined with the broader economic adjustments and policy changes, reflects the ongoing fluctuations in the market and the evolving landscape of the steel industry in Pakistan.
The adjustments in steel pricing and the strategic shifts regarding PSM’s assets highlight the dynamic nature of the industry amidst global and local economic pressures.
