Pakistan Steel_Scrap down 22%MoM in May’22, amid cheaper Russian imports, (AKD Daily, May 25, 2022)
Scrap down 22%MoM in May’22, amid cheaper Russian imports
International scrap prices have contracted 22%MoM in May’22, currently hovering
around US$487/ton compared to FYTD/CYTD avg. of US$508/553/ton. Following periods
of high volatility, scrap prices have declined rapidly amid abundant cheap Russian imports
available at European ports resulting in dampening prices.
India has raised duties on export of major steel products including iron ore to curb down
soaring steel production costs to curtail end-product prices. To note, Indian steel exports
dropped 21.9%YoY and 37.8%MoM in Apr’22, highlighting the slowdown in global steel
demand.
Local rebar prices have remained flat at PkR216-217K/ton in May’22, amidst slowdown in
local construction demand where cement dispatches declined by 17%/29% YoY/MoM in
Apr’22. Moreover, construction demand is likely to squeeze even further due to fragile
macro and political environment.
With the overall macroeconomic outlook being grim, steel sector is also expected to remain
under pressure, however, in case of MUGHAL, the risk profile is reduced due to its
diversified product portfolio and dollar denominated income from non-ferrous segment.
Mughal Iron & Steel Industries Ltd. Mughal Iron & Steel Industries Limited is engaged in manufacturing and trading of mild steel products. The Company is engaged in producing steel in the long-rolled steel products, which has a capacity of 688,000 metric/tons of re-rolled steel per annum. The Company is engaged in multidimensional activities from making billets of mild steel, spring steel, deformed bar, re-bar, cold twisted rebar and a range of sections, such as I-beams, L-sections, C-section, H-beams and T-bar. The Company offers its products under various categories, including Smelting, such as Ferro Silicomanganese, Ferro Chrome and Ferro Silicon; Billet, such as Mild Carbon Billets, Spring Steels, Austentic Stainless Steel, Ferrite Stainless steels and Alloys Steels; Bars, including Deformed Bars, Re-inforcement Bars and Thermax Bars; Beams, including I Beams (Girders), Angle Section (L Section), T Bar (T section) and C Channel, and Grade and Specifications, including ASTM A 615 G-40 and ASTM A 321.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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