Islamabad, October 20, 2023 (PAKONOMY): In a significant move, Pakistan has witnessed a substantial reduction in the prices of steel rebar during the month of October. This price adjustment comes as a result of the Pakistani Rupee’s impressive recovery against the US Dollar since September 5, 2023.
Steel rebar, a vital component in the construction and infrastructure industry, has seen a price reduction of around Rs. 10,000 per ton, which took effect from October 20, 2023. The new retail prices now stand within the range of Rs. 250,000 to Rs. 258,000 per ton, according to the latest findings by JS Research.
This remarkable shift in steel prices was initiated by major steel rebar producers in Pakistan, who took a decisive step by announcing a significant reduction in the prices of steel bars. The reduction ranges from four to five percent and is attributed to the recent appreciation of the Pakistani Rupee (PKR) against the US Dollar. Deputy Head of Research at JS Global, Waqas Ghani, explained that this price adjustment reflects the positive trends in the foreign exchange market.
The notable price reduction has been welcomed by various stakeholders in the construction and manufacturing industries, as it is expected to have a positive impact on project costs and overall economic activity.
One of the key takeaways from this development is that steel supply concerns have significantly abated, and October is likely to see stability in steel prices. However, it’s worth noting that there are potential upside risks to steel prices in the future. These risks primarily stem from any unforeseen disruptions in the procurement of raw materials and fluctuations in the exchange rate between the Pakistani Rupee and the US Dollar.
As Pakistan continues to navigate its economic landscape, the reduction in steel rebar prices is a noteworthy development, offering potential benefits to both the construction industry and the broader economy. Stay tuned for further updates on this evolving story.