In a much anticipated market move, domestic long steel prices jumped today, with graded rebar manufacturers hiking rates by around PKR 4,000-5,000/t across all grades and specifications. The announcement came a day after mills had closed bookings.
Mills in Karachi are now offering G60 ASTM-A615 10 mm rebar at levels between PKR 186,000-187,000/t Ex-Mill up from PKR 182,000-183,000/t when last revised on October 8th 2021.
Similarly offers for 12mm G60 ASTM-A615 rebar are now averaging between PKR 184,000-185,000/t Ex-Mill, up from PKR 180,000-181,000/t previously.
Meanwhile, mills in Punjab are offering 12 mm graded rebar between PKR 183,000-185,000/t Ex-Mill.
The jump came at the back of a continuing devaluation of the PKR against the USD and the recent tidal surge witnessed across Asian scrap markets, with imported scrap offers into Pakistan rising on a near daily basis. Moreover, energy prices in the domestic market along with an additional input tax cost borne by steelmakers has necessitated the hike.
In terms of prices, material tightness in the domestic market is largely supporting mill offers, however, participants expect buying momentum to slow down as construction activities across the northern parts of the country slow down as winters approach.
Earlier participants were eagerly restocking, however according to traders it is likely that the recent hike will dampen appetite as buyers may be unable to absorb rising costs given tighter liquidity positions and the slowdown in end-user demand.