December 2, 2021 (MLN): Owing to the notable decline in international CRC and HRC prices, Aisha Steel Limited ( ASL) and International Steel Limited (ISL) have decreased their prices by PKR8,000 per ton today, as per our channel checks.
This takes 1mm thickness CRC and HDGC price to PKR202,500 and PKR209,850, respectively.
Over the last 15-20 days international CRC and HRC prices have come down by $150 per ton which is a significant decline in a very short span of time. Local players tried to hold prices up despite international CRC coming down so that they could maintain margins as they had imported high-cost HRC inventories, Arvind Anand, Head of Research at Fortune Securities told Mettis.
While expecting a price decrease in the local market due to the international price trend, customers/stockers disappeared from the market which dragged down the sales volumes for local manufacturers.
As soon as the local companies started booking HRC at lower costs, they dropped the prices in order to improve volumetric offtakes.
The decline of PKR 8000 per ton by ASL and ISL is only PKR8,000 whereas HRC, in PKR terms has come off by PKR22,000 ton over the last 15 days. Given this, steel prices may see a further decline along with international trends, he noted.
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