Steel Price in Pakistan Today

Steel prices are dependent upon different factors and they vary from city to city in each province. Most cities have similar prices such as Multan per kg steel price is PKR 243, whereas Karachi’s steel rate is PKR 250. But their slight difference is prominent and unobjectionable because production cost varies from city to city.

A responsible customer always pays heed to all the factors that impact the price of his required thing. You need to search for hours which may waste your half day but I will not let that happen because here I will discuss steel prices and the factors that influence steel rates.

How is Steel Price Calculated?

Steel is one of the most important components used in many things such as making cycles, cars building a house, and so on. Like everything else, steel is measured in different ways and the kilogram unit is more famous in Pakistan. It is usually measured as kilogram per cubic meter (kg/m3) and per metric ton.

Another way to measure steel is pounds per cubic foot (lb/ft3) such as 489.23 lb/ft3 or 976.65 kg/m3 steel. Stepping ahead, there are also further measures such as millimeters or inches to measure the thickness and length, for instance, a 2-meter-long steel bar is 200 millimeters wide and 12 millimeters thick would weigh 8.5 kg.

These are the major measurement units to purchase steel in Pakistan. But there is still something you are missing, the strength of the steel which is measured in grades that vary according to their prices. Basically, steel bars are based on two major grades 40 and 60; the first one is a little less powerful as compared to the later one.

Strength of Steel

Grade 40

Here comes our target agenda, steel strength is highly significant for construction. Grade 40 steel is a bit weaker as compared to its competitor but is used for construction, structural beams, making pipes, and machinery components. The grade 40 steel has a minimum yield strength of 40,000 psi which is perfect for house constructions.

The major factor is that grade 40 steel is cheaper as compared to its competitor because it requires less material to produce. Grade 40 steel has lesser carbon content, therefore it is inexpensive. The price of 40-grade steel per kg in Pakistan is between PKR 255 to PKR 235.

Grade 60

Then comes our most powerful steel, the grade 60 which is made of high carbon content. The grade 60 steel is also based on pressure capacity and its minimum tensile strength is 60,000 psi. It has less elongation of 15% and more hardness of 190 HB that’s why grade 60 steel is more expensive.

You might think that because grade 60 is more powerful, you should use it for house construction, not grade 40. But you should know that grade 60 steel is used in heavy construction, building bridges, tools, and skyscrapers. The average price of grade 60 steel is from PKR 255 to PKR 270 per kg.

Rates of Steel on March 15, 2024 Depending upon Various Factors

There are multiple brands that are selling steel at various prices so I have created a table according to their mm or sutar size and the price of steel. I have mentioned the brand, then price and per kg. Look at the steel rates of today and purchase at the best price.

Steel Prices In Ton

Steel Prices In Different Cities And Grades

Factors that Affect the Price of Steel in Pakistan

You can see the prices of steel in Pakistan but the interesting fact is that steel prices are dynamic and their consistent change is based on multiple factors. It does not mean if the steel price is PKR 260 per kg today and a week later it will be PKR 360 but the price goes up and down such as PKR 260 or PKR 263 or PKR 259 within a week. Let’s discuss all the factors so you can prevent high steel prices.

Raw Material Costs

Steel is made of composite material in which the major three raw materials are iron ore, coal, and scarp. There are also other raw materials but they are required in low quantity. If the price of these three materials goes up or down, the price of steel may also take a different direction.

While discussing the raw material, you should keep in mind that these raw materials are traded on a global level. Therefore, if the iron ore is short globally, the price of steel may go up, the same happens to other raw materials. Iron ore is globally produced and its prices also fluctuate on a daily basis.

The raw material problem is not as simple as it seems because most raw material is produced after mining and refining. Let’s say mining companies raise the price of their services then the purchasers will also cost more to their customers instead of cutting their profit. That’s why steel prices constantly change and we cannot determine them in Pakistan.

Production Cost

The cost of production is more complicated than the raw material dynamics because it is also based on external plus internal factors. In the cost of production, a steel industry counts the cost of energy, labor, and transportation and then determines profit and price. Actually, a steel mill requires high energy for producing, mixing raw materials, molding, and shaping steel.

Energy Source

The energy source may vary according to the trend and cost of energy for example if the electricity is cheaper than LNG or LPG then steel mills use more electricity-based machinery. By all means, the source of energy also impacts the price of steel and if the source is inexpensive then the steel prices will also go down.

Labor

Then comes the most costly and difficult-to-manage factor of labor which includes the payment of all departments and dealing with laborers. High labor rates may increase the rate of steel and labor rates are determined by the government. For instance, the government sets a certain labor wage so the mill cannot pay lower than that amount.

Transportation

The last factor is the transportation price which is based on the price of fuel. Because steel is a heavyweight material, steel mills require powerful transportation which consumes more fuel. Here I would like to add that if the fuel price is increased globally or by the federal government, the price of steel will suddenly change.

Government Policies & Global Factors

Another major factor that influences the price of steel is the policy of the government. In Pakistan, the government takes an active role in determining prices plus the policy for major industries such as steel mills. So, the government acts as a watchdog for steel rates and look after the prices so that mills do not increase them according to their wish.

After that, you should know that the Pakistani government applies strict policies on trade and taxation. Because raw material is imported and steel is exported to multiple countries so if the government increases custom tax then mills can increase or decrease the price of the steel.

Steel prices are also influenced by global crises and the conditions such as the Ukraine and Russia war has an impact on gas and petrol rates. As the imbalance in fuel rates occurred, the prices of steel also increased. Global crises may change the prices of raw materials and fuel, so steel prices go up and down.

Steel Demand

When the demand is high, prices go up because the thing is unavailable in the market openly. Let’s say people started purchasing steel more, then the demand for steel will increase and its price will also go up. In case demand is low then the price may also come down.

Currency Exchange Rate

The last and most commonly occurring factor which contributed to the high prices of steel is the currency exchange rate. The more devalued our rupee is against the US dollar the more the prices. A higher exchange rate will increase the cost of raw materials and weaken the rupee, therefore the mills will increase the price of steel.

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