In a significant development, domestic steel prices in Pakistan have witnessed yet another substantial increase, dealing a blow to the construction and infrastructure sectors.
The surge, announced by domestic steel producers on Tuesday, sees prices of Cold Rolled Coil (CRC) and Hot Dipped Galvanized Coil (HDGC) climbing by Rs. 5,000 per ton.
Effective from December 26, 2023, the revised price for 1 mm CRC stands at Rs. 256,450 per ton, while HDGC has soared to Rs. 265,800 per ton. This move follows the recent trend of rising steel prices, with steel rebar experiencing a cumulative uptick of Rs. 12,000 per ton since October 31, reaching Rs. 266,000-272,000 today.
JS Research reported that the surge in steel prices could be attributed to various factors, with potential risks including unforeseen disruptions in the procurement of raw materials. Industry experts suggest that the relentless increase in steel prices might pose challenges for the construction and infrastructure sectors in the country.
Notably, the property and infrastructure segments constitute a significant portion of the demand in Pakistan's steel sector. However, with the slowdown in infrastructure stimulus and minimal growth in the property market, today's upward revision in steel rates is anticipated to further impede developments in the sector.
