Pakistan Steel Prices Surge Amid Currency Depreciation
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In recent reports, SteelMint assessed that due to the recent depreciation of the Pakistani Rupee against the US Dollar, which has hit an exchange rate of 134 from 124, prices have steeply risen in the steel market. Consumers are reluctant to make purchases amidst this devaluation of around 8-10%. According to sources, due to this fall of the PKR, raw material rates from Gadani have seen a 14 percent increase. Hence, business has taken a fall and transactions have been slow.
Market shows a substantial increase in ship cutting prices - According to sources, prices for tankers have been assessed at USD 455/LDT, having risen from last week's rate of 440-445/LDT. Similarly, the rates for general bulk cargoes have been gauged at USD 435-445/LDT, having increased from 425-430/LDT. As no new containers have been dismantled this week either, the price remains at around USD 460-475/LDT.
International scrap prices show marginal correction - International HMS 1 offers from Dubai has been assessed at USD 348-350/MT, a decrease from last week's rate of 353-355/MT,CFR. Imported shredded scrap from the UK has been evaluated at USD 357-360/MT, a fall with respect to the last reported prices of USD 362-365/MT,CFR Qasim.
Rebar prices rise sharply in the local steel market - The northern region average prices for domestic billet (Bala) have been gauged at PKR 80,000/MT (USD 611/MT), ex-works. 60 CC billet rates have been reported by sources at around PKR 86,500-87,500/MT (USD 657-668/MT). Local deformed G-60 Rebar prices for larger mills have been reported at PKR 99,000-100,000/MT, ex -works in Punjab, tax inclusive.
While Southern region based steelmakers pushed prices up at around PKR 104,000- 105,500/MT (USD 794-801/MT), ex-work from last weeks' prices gauged at PKR 100,000-101,000/MT, ex-works in Karachi region tax inclusive.
Local HMS prices have been recounted at PKR 55,000/MT (USD 419/MT), whereas local ship cutting plates have been assessed at a constant PKR 77,000/MT (USD 586/MT).
