Today’s Steel Rate in Pakistan January 2025 – UPDATED

Steel Rate in Pakistan

Steel, also known as Saria, is an iron alloy obtained by mixing iron with carbon. It is mostly used in construction projects where strength and durability are needed. The steel rate in Pakistan has slightly decreased, just like other constructional materials, due to some relief given from govt for industrialists and investors. The complete details for steel prices are provided below in the table:

Today’s Steel Rate in Pakistan 17th January 2025

Steel is generally divided into two categories based on quality: grade 40 and grade 60. The rates for both of them are given below:

Company Name40 Grade Price Per Kg (PKR)40 Grade Price Per Metric Ton (PKR)60 Grade Price Per Kg (PKR)60 Grade Price Per Metric Ton (PKR)
AF Steel2512,51,000 2532,53,000
Agha Steel2522,52,000 2542,54,000 
Aisha Steel2512,51,000 2532,53,000
Amreli Steel2522,52,000 2542,54,000 
Chenab Steel2532,53,000 2552,55,000 
Five Star Steel2442,44,000 2462,46,000 
Ittehad Steel2502,50,000 2522,52,000 
Moiz Steel2472,47,000 2492,49,000 
Mughal Steel2512,51,000 2532,53,000
Naveena Steel2462,46,000 2482,48,000 
Union Steel2472,47,000 2492,49,000 

Local Steel Prices in Big Cities of Pakistan

Here is a brief analysis of the steel rate in Pakistan for major cities,

CityRate per kg (PKR)Rate per matric ton (PKR)
Karachi 232-2362,32,000-2,36,000
Lahore228-2342,28,000-2,34,000
Faisalabad226-2322,26,000-2,32,000
Multan226-2322,26,000-2,32,000
Hyderabad230-2342,30,000-2,34,000
Peshawar228-2342,28,000-2,34,000
Quetta229-2352,29,000-2,35,000
Gujranwala226-2322,26,000-2,32,000

Steel production in Pakistan is supposed to grow, driven by factors such as rising demand and expanding local output. According to Tribune.com.pk, Pakistan and Russia have recently discussed a proposal to establish a new steel mill in Karachi. This initiative aims to enhance steel production and improve operational efficiency. Moreover, the govt has plans for various infrastructure projects that will definitely increase the demand for steel in the market.

History of Steel Rate in Pakistan

The prices of construction materials, such as cement, steel, sand, bricks, etc, often show slight changes as their prices are based on daily currency changes and demand in the market. Steel is an essential component for many construction projects. The chart below describes the average monthly steel rate in Pakistan during 2024.

Note: Click on a specific point to know the price for that month.

Remember that a slight variation in the prices of steel may occur in distant and far areas of Pakistan. But you can make a good decision to buy steel by getting an idea of the best time to purchase it. The chart shows the price trends of steel during 2024.

Factors Affecting Steel Rates

Here are some factors that directly affect the steel rate in Pakistan:

  • Global Trends: Global steel prices affect domestic steel costs due to its worldwide trade. When the global economy booms, steel demand rises. In contrast, during economic downturns, steel demand drops, leading to lower prices.
  • Raw Material Cost: In Pakistan, steel is made mainly from iron ore and coking coal, which we import from countries like Australia, Brazil, and India. This reliance on foreign sourcing adds an element to the pricing dynamics of steel.
  • Dollar Rate Fluctuation: Pakistan’s economy relies heavily on the US dollar for its import and export transactions. When the dollar strengthens internationally, importing iron and coal becomes more expensive. This directly drives up the cost of steel production.
  • Supply and Demand: According to the law of supply and demand, when there’s more of something available than people want to buy, its price tends to drop. In Contrast, if the demand for a product exceeds its availability, its price goes up.
  • Government Policies: The Pakistani government has the authority to influence the import-export balance through new policies and taxes. That can indirectly affect steel prices.
some factors that affect steel rate in Pakistan

Regional Price Variations

A slight variation in the steel rate in Pakistan is a common practice in different regions. Here are some possibilities that can be causes of them;

  • Transportation Costs: Getting steel from the factory to your local shop involves transportation costs. The more distance the steel travels, the more cost is added to its final. This means steel becomes more expensive in areas far from production plants.
  • Availability Options: If there are limited steel companies or shops available in your region, there will be less competition, which could affect the pricing. If you have more options to buy, the prices will be more competitive.
  • Dealer Margins: If the steel goes to far areas, it will pass through many dealers. Every dealer will keep its margin, resulting in a high price of steel for the final customer in distant regions.
  • Taxes and Government Regulations: Different regions, e.g., Punjab, Sindh, Federal, and KPK, may have varying sales tax rates or other government regulations regarding energy costs that can slightly impact the final price of steel in different areas.

Remember that these reasons can affect steel prices, but this will be very normal and slight. You can surely benefit from this article by getting an idea about steel prices and making the best decisions for the right time to start construction work.

An Alternative of Steel in Construction

Iron used to be an alternative to steel in construction projects. Let’s have a look at both offering unique advantages that suit various needs and applications.

Strength and Durability

  • Steel is exceptionally strong and durable, making it suitable for high-rise buildings, bridges, and infrastructure projects where structural integrity is crucial. It has a high tensile strength, allowing for the construction of lighter structures that can withstand heavy loads and strong environmental conditions.
  • Iron, however, is also strong; its strength is generally less than that of steel. It was historically used in construction, but its applications have been largely replaced by steel due to steel’s superior strength and durability.

Corrosion Resistance

  • Steel is sensitive to corrosion when exposed to moisture and oxygen, leading to rust formation over time. However, modern construction practices use corrosion-resistant coatings and alloys to reduce this issue.
  • Iron: Iron is highly suitable for rusting and corrosion, especially when exposed to moisture and oxygen. This limits its outdoor applications unless sufficiently protected or alloyed with other metals.

Flexibility and Formability

  • Steel is highly flexible and can be easily fabricated into various shapes and sizes, making it ideal for custom designs and complex architectural structures. It can be bent, rolled, and molded without losing its strength, allowing for versatile construction applications.
  • Iron is less flexible and formable compared to steel. It’s more tending and sensitive to cracking under stress, limiting its utility in modern construction where flexibility and formability are critical.

Cost and Availability

  • Steel is widely available and can be produced in large quantities, making it relatively cost-effective compared to other materials like concrete. The steel rate in Pakistan can fluctuate based on market conditions and global demand, but it is a little more expensive than iron.
  • Pure iron is less expensive than steel, but its application in construction is limited due to its inferior strength and durability. Iron ore is abundant, but the process of refining it into usable forms like molded wrought iron or cast iron involves additional costs.

Application in Construction

  • Steel is used extensively in modern construction for skyscrapers, bridges, industrial buildings, and residential structures. Its versatility, strength, and durability make it a preferred choice for structural frameworks and load-bearing components.
  • Iron applications in construction are now limited to niche uses like structural frameworks, bars, railway tracks, or specific industrial applications where its unique properties are advantageous.

In short, while both iron and steel have historically played essential roles in construction, steel has largely replaced iron in modern applications due to its superior strength, durability, flexibility, and cost-effectiveness. Steel’s ability to meet strict engineering requirements and environmental standards makes it the material of choice for most large-scale construction projects today.

Summary

Steel plays a crucial role in the construction industry of Pakistan. The current steel price in Pakistan ranges between 243-253 Rs per kg, depending on the grade and the company. Steel is divided into two primary grades, 40 and 60, with minor price differences between them. The fluctuating steel prices are influenced by various factors like global trends, raw material costs, the US dollar rate, supply and demand, and government policies.

Additionally, regional price variations occur due to transportation costs, dealer margins, and local regulations. In comparison to steel, iron was historically used in construction but has been largely replaced by steel due to its superior strength, durability, and flexibility. Steel is highly resistant to corrosion, can be easily formed into various shapes, and is widely available, making it cost-effective despite being slightly more expensive than iron.

FAQs

Grade 60 steel is stronger than grade 40 steel. Grade 60 steel has a strength of 60 ksi (knots per square inch), while grade 40 steel has a strength of 40 ksi. This means that grade 60 steel can bear more load compared to grade 40 steel.

Amreli and Mughal are leading steel brands in Pakistan, known for producing high-quality steel that meets international standards.

Stainless steel is ideal for hydro projects due to its chromium content, providing excellent corrosion resistance. This enhances its strength and durability, making it a preferred choice for such applications.

The increase in steel prices in Pakistan can be attributed to several factors. These include fluctuations in international market prices, import duties, growing demand for steel, and rising exchange rates.

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