Posted on 21 Feb 2022
The tensions between Russia and Ukraine could elevate imported finished steel prices in Pakistan, fear some sources in the Asian country.
The crisis is likely to cause a rally in prices of steel raw materials and finished products, energy and semiconductor chips. “In the short run, the price rally in finished steel products such as cold rolled coil, rebars and tubular steel might result in inventory gains. However, demand destruction is likely to occur in the medium term due to already higher prices,” financial services firm Ismail Iqbal Securities says.
Apart from domestic steel production of around 4-5 million tonnes, Pakistan imports around 2-3mt to fulfil its consumption requirements, Kallanish notes.
Ukraine is a major exporter of finished flat and long steel to Pakistan, and the crisis is expected to restrict the influx of steel from Ukraine. Pakistan imported around 50,000 tonnes of steel from Ukraine during January-November 2021, the majority of which was finished flat steel. The nation also imports tubes, pipes and hollow profiles from Ukraine.
Source:Kallanish
