by humayunbaig 
The recent months have seen a substantial change in the economic scenario of Pakistan, with the local currency, PKR, strengthening against the US dollar (USD). This has led to a consequential dip in steel prices, offering relief to the construction industry. However, this relief is somewhat offset by the steady rise in cement prices.
The Impact on Steel Rates
Since September 2023, the steel industry has experienced a significant decline in prices. The current price for local steel per metric ton stands at PKR 245,000, a drastic decrease from the previous price of PKR 305,000 per metric ton. This price drop has been attributed to the strengthened PKR value against USD.
Local Steel vs Branded Steel
When comparing the prices of local and branded steel, it’s evident that there’s a noticeable difference. The local steel is priced at PKR 245,000 per metric ton, while branded steel ranges between PKR 260,000 and PKR 265,000 per metric ton, according to market records provided by traders.
Price Comparison of Steel Rates in Pakistan
To gain a better understanding of the situation, let’s look at the minimum and maximum rates of 40 and 60-grade steel in Pakistan:
Local Steel: Ranging from PKR 230,000 to PKR 241,000 per metric ton
Branded Steel: Ranging from PKR 260,000 to PKR 265,000 per metric ton
The Cement Situation
Despite the drop in steel prices, the country has seen a slight uptick in the weekly prices of cement bags. According to statistical data, the northern region’s average cement bag price has risen to PKR 1,276. This marks a 0.35% increase from last week’s average of PKR 1,271.
Conclusion
The recent strengthened PKR value against USD has led to a major drop in steel rates, providing some respite to the construction industry. However, the simultaneous rise in cement prices poses an ongoing challenge. The situation calls for close monitoring and strategic planning for those involved in the construction sector.
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