Pakistan Steel Mills on Wednesday moved to increase the price of hot rolled coals and coal tar by Rs 2,000 per ton to rationalise prices of its products in the line with the rates in the international market. Market sources told Business Recorder that PSM raised the price of hot rolled coals (HRC) by Rs 1,000 per ton. With the current increase, the maximum price of HRC touched Rs 69,100 per ton (excluding tax) in the domestic market.
The country’s largest steel plant, facing a massive decline in sales followed by a decline in production, announced to raise the prices of almost all grades and price of up to 2mm x1000 / 1220 HRC surged to Rs 69,100 per ton (excluding tax). Now, 2.00 to 2.35 x 1000 / 1220 HRC will be available at Rs 68,700 per ton (excluding tax) and over 6mm and above HRC will be sold at Rs 67,500 per ton, excluding tax.
Moreover, the price of coal tar, a by-product of coal, was raised by Rs 2,000 per ton to Rs 47,000 per ton from Rs 45,000 per ton (excluding tax). At the same time, Pakistan Steel announced a decrease in prices of two of its products – MS Slab and Bulk Hot Metal Skull by Rs 1,500 and Rs 3,000 per ton, respectively.
After the cut, the price of MS Slab declined to Rs 58,300 per ton, down from Rs 58,900 per tons, excluding tax. Meanwhile, the price of Bulk Hot Metal was reduced to Rs 32,000 per ton from Rs 35,000 per ton. The new prices will be implemented with immediate effect.
Market sources said that the sales of Ms Slab and Bulk Hot Metal Skull were on the decline and the decline in prices was in line with PSM’s marketing objective, aimed at enhancing sales and reducing losses. They said that HRC prices were already linked with international market and any change in the world market would directly affect prices of local steel products.