Hadeed Pakistan, a new player in the Pakistani steel market, has recently started cold rolled coil (CRC) production in the northern part of the country where no steel company has established assets, according to local news reports. This may help reduce transportation costs for the customers in the northern region.
The Punjab-based steel producer will have an annual cold rolled coil production capacity of 300,000 mt. Pakistan’s total cold rolled coil output has increased to 1.3 million mt per year with Hadeed’s entrance to the market, while domestic CRC consumption is 700,000 mt.
With the oversupply, market players may consider offering discounts in their cold rolled coil sales, SteelOrbis understands.
Other major players in the Pakistan steel industry, namely, International Steels and Aisha Steel Mills, have an annual cold rolled coil production capacity of 550,000 mt and 450,000 mt, respectively.