Steel bar prices increased in Pakistan due to rising costs

A dealer quoted the prices of Amreli steel bars in the southern region as Rupees 276,500 (USD 992) for sizes 9.5/10 mm and 12 mm, and Rupees 274,500 (USD 985) for sizes 16 mm and above.

Citing fluctuations in inputs and market conditions, Faizan Steel reported prices of various sizes of steel bars to be in the range of Rs 272,000-274,000 per tonne.

Last month, steel bar prices increased by Rs 4,000 per tonne, ranging between Rs 250,000 and Rs 267,000, driven by the increase in global iron and steel scrap prices of major steel producers. Steel bar producers have warned of further price increases due to supply chain disruptions after attacks on shipping vessels affected the Red Sea Europe route and insurance and freight costs rose.

The appreciation of the rupee against the dollar in the last four months has had a positive impact. This led to reduced transportation costs of final and imported raw materials, showing a global downward trend in iron and steel scrap prices from July to December 2023. As of January 7, 2023, one dollar traded at 307.10 Rupees compared to the current level of 279 Rupees.

Pakistan's iron and steel scrap imports increased in quantity despite a decrease in the average price per tonne in 6MFY24 compared to the same period last fiscal. The amount of scrap imported increased from 1,318 million tonnes ($706 million) to 1,320 million tonnes ($606 million) in 6MFY24, with the average price per tonne falling from $535 to $459.