In October 2023, Pakistan’s steel industry experienced a significant shift in prices and market dynamics. The Pakistani Rupee’s notable recovery against the US Dollar since September 5, 2023, played a crucial role in this change. The price of steel rebar saw a substantial drop of around Rs. 10,000 per ton, which was effective from October 20, 2023. This brought retail steel prices into the range of Rs. 250,000 to Rs. 258,000 per ton, as reported by JS Research.
Major steel rebar producers also announced a significant reduction in steel bar prices, ranging from four to five percent. This was attributed to the recent strengthening of the Pakistani Rupee. As a result, fears of a shortage in steel supply have largely subsided.
While the industry enjoyed a positive trend in October, potential risks still loomed. These included unexpected disruptions in the procurement of raw materials and fluctuations in the rupee-to-dollar exchange rate. Overall, the steel industry in Pakistan seemed to be in a state of transition, with reduced prices benefiting consumers and market stability on the horizon.