Pakistan's Steel Exports Rise Rapidly and Awaits Anti-Dumping Duties Extension

According to Aisha Steel Mills (ASML), the growth in vehicle and construction sector sales in Pakistan bodes well for demand for both cold rolled and hot dipped galvanized coil. The firm adds that the outlook is promising and it expects production and sales targets to be met.

In the first quarter of the fiscal year to September, the company increased sales 79% year-on-year to 94,878 tonnes. However, this was less than 107,675 tons planned for the quarter. Production fell -2% to 69,202 tonnes - 36% less than planned - due to a shortage of hot-rolled products, ASML notes.

HRC suppliers have delayed two shipments, citing Covid-19 and weather conditions. The congestions in the ports of Karachi have also led to further delays in material clearance. Stocks of finished goods dropped from 30,000 tonnes at the beginning of the fiscal year to about 4,000 tonnes at the end of the September quarter.

Chinese prices for HRC rose gradually from the beginning of the quarter to the end, from about $ 450 per tonne to $ 520 per tonne in China. They have since stabilized. After the decline in the number of Covid-19 cases in Pakistan, domestic demand for steel has surged. CRC prices also rose gradually, following an international trend, ASML notes.

The firm has filed a request with the National Tariff Commission to end the anti-dumping duties of 13.17-19.04% imposed in 2016 on CRC imports from China and Ukraine. These fees will expire in January 2021. ASML expects them to be renewed for another five years.

ASML's revenue in September rose 81% year-on-year to Rs 13.3 billion (US $ 83.8 million), while exports grew more than 5.5 times to Rs 276.7 million.