Steel players expect growth for FY22 to be in the range of 6-10%

Author: Wafa Sheraz

In a conference organised by AKD Securities Ltd, an analysis regarding industrial growth showed progress in the different sectors of the industry. Key players in the market predict growth rate for the coming fiscal year in between a booming 6-10 percent.
The Pakistan Long Steel Conference (PLSC) was called where leading listed steel players shed light on the future outlook of the sector.
Mohsin Ali, an investment analyst at the brokerage house, observed that the extremely robust construction package introduced by the government for the housing sector coupled with contribution from increased urbanization will induce massive steel demand in the coming years.
Housing schemes launched for the general public have great potential for the same, leading to 100 percent capacity utilization in the industry. There are high hopes from the Naya Pakistan Housing Scheme that is expected to generate 4-5 million tons of demand in the coming 2-3 years (given the project reaches 50% of its completion).
He added that demand generated via dam construction is estimated to be 3.5-4.5 million tons over the construction horizon as steel consumption ratio to cement is higher for dams
The gathering was informed; in addition, that the hub of construction activity would be the northern region of Pakistan given 85 percent of utilization will be done here. Furthermore, upward pressure on prices would be due to this demand as well as a rise in scrap prices.
He added that potential increase in demand is indicative of the fact that the industrial sector is on the right track, leading to economic growth and reduction in unemployment.
Regarding the influx of ungraded rebar, Mohsin commented that industry players remain confident that low current prices differential (PkR7-12k/ton vs. PkR15-20k/ton previously) will help in mitigating the excess supply impact. To recall, supply of ungraded rebar had taken a hit due to raw material availability issues amid environmental concerns which led to closure of few plants.
The conference was attended by listed long steel players namely Amreli Steels Ltd. (ASTL), Mughal Iron & Steel Industries (MUGHAL), Agha Steel Industries Ltd. (AGHA) and Ittefaq Iron Industries Limited (ITTEFAQ).

Share
Leave a Comment

Recent Posts

  • World

Developing nations slam ‘paltry’ $300bn climate deal at COP29

Countries at the United Nations climate conference (COP29) in Baku, Azerbaijan, adopted a $300 billion…

55 mins ago
  • World

35 dead in Gaza amid intensified Israeli bombardment

Gaza's Health Ministry reported 35 Palestinians killed and 94 injured in the last 24 hours…

55 mins ago
  • World

India mosque survey sparks clashes, leaving two dead

Indian Muslim protesters clashed with police on Sunday with at least two people killed in…

56 mins ago
  • Pakistan

Indian SC weighs Yasin Malik’s trial amid security concerns

In a significant legal development, the Supreme Court of India has reportedly emphasized the importance…

56 mins ago
  • World

US SEC summons Adanis on bribery allegations

The U.S. Securities and Exchange Commission (SEC) has summoned Indian billionaire Gautam Adani over allegations…

56 mins ago
  • Pakistan

CM pays tribute to flying officer Marium on death anniversary

Punjab Chief Minister Maryam Nawaz Sharif has paid glowing tribute to Marium Mukhtiar, Pakistan's first…

57 mins ago