All the markets worldwide face problems regarding raw material costs, energy & petroleum prices, availability of liquidity, exchange rate, prices, and demand and supply issues. Pakistan’s rebar market has faced price fluctuations in the last few months. Pakistan Steel Mills has decreased the prices of rebar due to several reasons.
Appreciation of Rupee:
Pakistan’s national currency has depreciated against the US dollar in the last few months. The dollar exchange rate was RS.203.75 on 14 June 2022. Four leading steel mills, i.e., Ittihad Steel, Agha Steel, Mughal Steel, and Amreli Steel, had surged the steel rebar prices by PKR 6000-7000/MT of G-60 and reached PKR 228,000-231,000/MT on 14 June 2022. A continuous rise in dollar value and depreciation of PKR to RS.250 per dollar in Pakistan on 31 July 2022, the lowest rate in Pakistan, again forced the steel mills to increase their prices to RS.236,000/MT on 22 June 2022.
Fall in Imports:
Now foreign exchange reserves of Pakistan have improved due to the provision of foreign funds from IMF, Saudi Arabia, and China. Pakistan is a consumption-oriented economy; a fall in imports from Pakistan is also responsible for the appreciation of PKR. The rupee is exchanged with the dollar at RS.222.50 per dollar on 23 August 2022.
Mughal Steel mill, Ittihad Steel, and FF Steel have set their new prices for steel rebar of G-60 are RS.225, 000/MT, RS.222000/MT, and RS.223, 792/MT, respectively. RS.14000/MT has declined from 22 June 2022 to 23 August 2022.
Monsoon Weather:
Due to monsoon weather, people halted construction activities, less demand for construction material resulted in piling up the stocks of finished steel products, and mills cut the prices to increase their sales.
23 August 2022. KE DIGITAL
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