News update: – 28 February 2020, According to the recent statement, a new competitor in the cold-rolled coil (CRC) segment of the steel industry. it has recently in progress production in the relatively intact northern part of the country.
According to JS Global analyst Mr. Arsalan Ahmed, the steel producer is based in Punjab and has a production capacity of 300,000 tons per annum. While about the new establishment has well-known its trail in the north where no steel company has a direct presence, he said. Pakistan’s total production of cold-rolled coils stands at 1.3 million tons per year, of which the demand is 700,000 tons.
Furthermore, “the surprising thing for all players is that the supply of cold-rolled coils in the country is two times compared to its demand,” Ahmed said. Talking more about the production he added that “Total production capacity for cold-rolled coils has risen to 1.3 million tons after the entrance of Hadeed Pakistan.”
In the steel segment, International Steels produces one million tons of steel annually, of which the production of cold-rolled coils stands at 550,000 tons. On the other hand, Aisha Steel Mills produces 450,000 tons of cold-rolled coils on a yearly basis. While Hadeed Pakistan selected to invest in the steel business keeping in mind that the two existing steel companies were based in Karachi and catered to demand from across the country from the port city.
More from the statement is as follows “The establishment of the new company will be beneficial from the customer’s point of view if not from the company’s point of view,” said Ahmed. According to the most recent taxes and custodies announced by the establishment. The 1mm cold-rolled coil is priced at Rs110,525 per ton, which is nearly the same price as that for the existing companies.
Leave a Reply