Report
EUR 9.55 For Business Accounts Only

Pakistan Steel_Steel recovers amid Chinese re-emergence ,(AKD Daily, Dec 12, 2022)

Steel recovers amid Chinese re-emergence
International scrap prices have shown major weakness since peaking in mid-April’22, declining by 39% since then, to currently hover around ~US$385/ton compared to FYTD/ 
CYTD avg. of US$373/447/ton
 CRC-HRC spreads have long contracted from their super-cycle highs of US$145/ton, down 
58% from the said peaks, now currently trading at US$61/ton
 More specifically, Vietnamese hot rolled coil index saw price gains, with the last traded 
price standing at US$565/ton vs. of US$525/ton (up 8% vs. Nov’22 average)
 Currently, average ex-mill CRC price (excluding sales tax) stands at PkR210k/ton, with galvanized prices maintaining their deltas of ~5%, standing at PkR225-235k/ton, respectively.
 Overall, with the steel sector in a spot of bother, MUGHAL seems to be the best of the lot, 
with our Dec’23 TP of PkR75/sh, an upside of 36% from the previous close

Provider
AKD Securities Limited
AKD Securities Limited

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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