Steel prices set to rise despite stronger rupee

Despite the recent drop of the dollar to Rs290.86 in the interbank market, a Rs16.24 decrease in just 14 days, and the decline in scrap prices in the world market, steel bar manufacturers are hinting at another price increase of Rs10,000 per tonne. In the open market, the greenback is now trading at Rs293, marking a Rs40 decrease over the past two weeks. A steel bar trader recalled that manufacturers had raised prices by Rs10,000 per tonne last month due to the rupee-dollar exchange rate and an unprecedented increase in energy costs. Currently, high-quality steel bars are priced at Rs292,000-294,000 per tonne, while another quality is available for Rs286,000-288,000 per tonne. In July-August 2023, Pakistan imported 391,703 tonnes of iron and steel scrap ($185 million), compared to 440,185 tonnes ($258m) during the same period in 2022, resulting in a drop in the average per tonne (APT) price from $587 to $473 during the mentioned period.