Pakistani CRC and HDG mills hike prices to offset currency fluctuations

Notwithstanding the prevailing bearish sentiments in the global steel and raw material markets and, in particular lower input costs, on September 1 Pakistani producers of cold rolled (CR) and hot dip galvanized (HDG) coils announced increases in offer prices for their domestic market. The suppliers have been aiming to offset the devaluation of the Pakistani rupee, which has fallen to the lowest level against the US dollar since August, 2020, when the exchange rate was PKR 168,522 to the dollar. Nevertheless, even taking into account the increase in CRC and HDG prices by PKR 5,000/mt (around $30/mt), the dollar-based quotations have declined by $10-16/mt compared to the previous levels on July 30.

Meanwhile, the silence in the import hot rolled coil (HRC) segment has continued, with Pakistani buyers preferring to watch developments in the global market closely. As SteelOrbis reported, in the first half of August both re-rollers and pipe makers in Pakistan replenished their stocks with ex-Russia and ex-Kazakhstan HRC at $945-970/mt CFR.

All prices on Pakistani rupee basis include 17 percent VAT.

$1 = PKR 166.928