Amreli Steels Limited, one of Pakistan's leading long product manufacturers, has a steelmaking capacity of 600,000 tons annually and can produce 605,000 tons of steel bars. However, due to challenging market conditions, the company has decided to temporarily halt operations at its Site Rolling Mills (SRM), which contributes 30% of its total output. Meanwhile, Amreli’s Dhabeji steel plant will be operational at its full capacity.
The company is grappling with various economic pressures, including a decline in steel bar demand, surging utility costs (especially electricity), high interest rates, an uneven tariff structure, excessive taxes, and rising levels of smuggling and unregistered activities. These factors are creating an environment of unfair competition that disrupts the market's stability.
Amreli Steels plans to reassess the situation in six months, and if conditions improve, the SRM facility may resume operations.
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