Steel product prices in the domestic market have recently witnessed an upward revision, with an increase of Rs. 3,000 per ton. This adjustment in steel prices reflects the broader trends of rising raw material costs and a substantial surge in gas prices.
According to information from JS Global, the new retail price range for steel products is now established at Rs. 268,000 to Rs. 274,000 per ton, and these revised prices took effect starting from November 28, 2023.
It is worth noting that steel rebar prices have demonstrated a cumulative increase of Rs. 12,000 per ton compared to their levels on October 31. At that time, steel rebar prices were within the range of Rs. 259,000 to Rs. 264,000 per ton, whereas they have now reached Rs. 266,000 to Rs. 272,000 per ton.
Several factors have contributed to the recent price adjustments in the steel market. Notably, the escalating costs of raw materials have put pressure on the industry, leading to the need for price revisions to maintain profitability. Additionally, the significant hike in gas prices has further added to the production costs in the steel sector.
Looking ahead, there remain certain upside risks to the current steel price increases. These include the possibility of unexpected disruptions in the procurement of raw materials, which could further impact production costs and, subsequently, steel prices. Additionally, fluctuations in the rupee-to-dollar exchange rate may influence the cost dynamics of the steel industry.
The exchange rate of the Pakistani rupee against the U.S. dollar has shown a declining trend over recent days, falling for the third consecutive day on Monday. As of today (Tuesday), the rupee continues to trade in the range of 285 to 286 against the dollar after reaching a peak of 285 in the preceding session.
The recent adjustments in steel prices reflect the challenges posed by rising raw material costs and gas prices in the domestic market. The industry will continue to monitor these factors closely and make necessary adjustments to ensure stability and sustainability in the steel sector. Additionally, external factors such as exchange rate fluctuations may continue to influence the pricing dynamics of steel products in Pakistan.