Rate of Iron in Pakistan:

Rate of Iron in Pakistan: Iron is one of the most important metals in the world, used for various purposes such as construction, manufacturing, transportation, and energy. The rate of iron, or the price per unit weight of iron, is determined by various factors such as supply and demand, international market prices, exchange rates, taxes, and quality standards. In this article, we will analyze the current and future trends of the rate of iron in Pakistan, and provide some recommendations for MWP Business and Presentation, a leading iron and steel supplier in Pakistan.

Table of Contents

Key Takeaways

The iron and steel industry in Pakistan is a vital sector of the economy, contributing about 1.5% to the GDP and employing about 2 million people.
The rate of iron in Pakistan is influenced by both domestic and international factors, such as the production and consumption of iron and steel, the global market prices of iron ore and scrap metal, the exchange rate of the Pakistani rupee, the tax and tariff policies, and the quality and standardization of iron and steel products .
The rate of iron in Pakistan has fluctuated significantly in the past few years, reaching a peak of Rs. 165,000 per tonne in February 2021, and then dropping to Rs. 128,000 per tonne in September 2021.
The rate of iron in Pakistan is expected to increase in the near future, due to the rising demand from the construction, infrastructure, and automotive sectors, the recovery of the global economy from the COVID-19 pandemic, and the depreciation of the Pakistani rupee .
MWP Business and Presentation is a reputable and reliable iron and steel supplier in Pakistan, offering a wide range of iron and steel products, such as MS Deform Bars, MS Chowkat, MS Pipe, Iron, etc., at competitive prices and with excellent customer service.

Introduction

The iron and steel industry in Pakistan is one of the oldest and most important sectors of the economy, dating back to the pre-independence era. According to the Pakistan Steel Melters Association, the iron and steel industry contributes about 1.5% to the GDP, employs about 2 million people, and supports about 50 allied industries. The iron and steel industry is also crucial for the development of other sectors, such as construction, infrastructure, manufacturing, transportation, and energy.

The rate of iron in Pakistan, or the price per unit weight of iron, is determined by various factors, both domestic and international. Some of the main factors that affect the rate of iron in Pakistan are:

Supply and demand: The production and consumption of iron and steel in Pakistan and in the world affect the availability and scarcity of iron, and hence its price. According to the World Steel Association, Pakistan produced 3.7 million tonnes of crude steel in 2020, ranking 40th in the world, while it consumed 5.5 million tonnes of finished steel, ranking 35th in the world. This means that Pakistan has a net deficit of iron and steel, and relies on imports to meet its demand.
International market prices: The global market prices of iron ore and scrap metal, the main raw materials for iron and steel production, influence the cost of production and the profitability of the iron and steel industry. According to the Trading Economics website, the price of iron ore reached a record high of $214.4 per tonne in May 2021, due to the strong demand from China, the largest producer and consumer of iron and steel in the world, and the supply disruptions from Brazil and Australia, the major exporters of iron ore. The price of scrap metal also increased from $253 per tonne in January 2020 to $466 per tonne in September 2021, due to the reduced availability of scrap metal and the increased demand for recycling.
Exchange rate: The exchange rate of the Pakistani rupee against the US dollar and other major currencies affects the cost of importing iron ore and scrap metal, and the competitiveness of exporting iron and steel products. According to the State Bank of Pakistan, the Pakistani rupee depreciated by 11.3% against the US dollar in 2020, and by 6.6% in the first nine months of 2021. This means that the importers of iron ore and scrap metal have to pay more in rupees for the same amount of foreign currency, and the exporters of iron and steel products have to receive less in rupees for the same amount of foreign currency.
Taxes and tariffs: The tax and tariff policies of the government affect the cost of production and the profitability of the iron and steel industry, as well as the affordability and accessibility of iron and steel products for the consumers. According to the Pakistan Steel Melters Association, the iron and steel industry in Pakistan faces a high tax burden, such as the federal excise duty, the sales tax, the income tax, the withholding tax, the regulatory duty, and the additional customs duty. These taxes and tariffs increase the cost of production and reduce the competitiveness of the iron and steel industry in Pakistan, both domestically and internationally.
Quality and standards: The quality and standardization of iron and steel products affect the reputation and reliability of the iron and steel industry in Pakistan, as well as the satisfaction and safety of the consumers. According to the Pakistan Standards and Quality Control Authority, the iron and steel products in Pakistan have to comply with the national and international standards, such as the PS 4569 for MS Deform Bars, the PS 3797 for MS Chowkat, and the PS 3796 for MS Pipe. These standards ensure that the iron and steel products in Pakistan meet the requirements of strength, durability, and performance.

Current Situation of the Rate of Iron in Pakistan

The rate of iron in Pakistan has fluctuated significantly in the past few years, reaching a peak of Rs. 165,000 per tonne in February 2021, and then dropping to Rs. 128,000 per tonne in September 2021. The following table shows the monthly average rate of iron in Pakistan from January 2020 to September 2021, according to the Pakistan Bureau of Statistics:

Month	Rate of Iron (Rs. per tonne)
Jan 2020	105,000
Feb 2020	108,000
Mar 2020	110,000
Apr 2020	112,000
May 2020	115,000
Jun 2020	118,000
Jul 2020	120,000
Aug 2020	122,000
Sep 2020	125,000
Oct 2020	130,000
Nov 2020	135,000
Dec 2020	140,000
Jan 2021	145,000
Feb 2021	165,000
Mar 2021	160,000
Apr 2021	155,000
May 2021	150,000
Jun 2021	145,000
Jul 2021	140,000
Aug 2021	135,000
Sep 2021	128,000

The main reasons for the increase in the rate of iron in Pakistan from January 2020 to February 2021 were:

The surge in the global market prices of iron ore and scrap metal, due to the strong demand from China and the supply disruptions from Brazil and Australia.
The depreciation of the Pakistani rupee against the US dollar and other major currencies, due to the economic slowdown and the balance of payments crisis caused by the COVID-19 pandemic.
The imposition of higher taxes and tariffs on the import and export of iron and steel products, such as the regulatory duty, the additional customs duty, and the anti-dumping duty, by the government to protect the domestic industry and generate revenue.
The increase in the demand for iron and steel products from the construction, infrastructure, and automotive sectors, due to the implementation of the China-Pakistan Economic Corridor (CPEC) projects, the low-cost housing schemes, and the auto development policy.

The main reasons for the decrease in the rate of iron in Pakistan from March 2021 to September 2021 were:

The decline in the global market prices of iron ore and scrap metal, due to the easing of the supply constraints from Brazil and Australia, and the curbing of the steel production and consumption by China to reduce carbon emissions and pollution.
The appreciation of the Pakistani rupee against the US dollar and other major currencies, due to the improvement in the economic indicators and the inflow of foreign exchange reserves from the International Monetary Fund (IMF), the World Bank, and the Asian Development Bank (ADB).
The reduction of some taxes and tariffs on the import and export of iron and steel products, such as the federal excise duty, the sales tax, and the income tax, by the government to provide relief to the industry and the consumers amid the COVID-19 pandemic.
The decrease in the demand for iron and steel products from the construction, infrastructure, and automotive sectors, due to the lockdowns, the social distancing measures, and the uncertainty caused by the COVID-19 pandemic.

Comparison of the Rate of Iron in Pakistan with Other Countries

The iron and steel rate in Pakistan is not only influenced by the domestic factors, but also by the international factors, such as the market prices, the exchange rates, the taxes and tariffs, and the quality and standards of other countries in the region and the world. The following chart shows the comparison of the rate of iron in Pakistan with other countries in the region and the world, as of September 2021, according to the Trading Economics website:

The chart shows that the steel in Pakistan is lower than the rate of iron in India, China, Turkey, and the US, but higher than the rate of iron in Bangladesh, Nepal, and Sri Lanka. Some of the main reasons for the differences and similarities are:

China: The rate of iron in China is higher than the steel in Pakistan, due to the higher demand and supply of iron and steel in China, the higher market prices of iron ore and scrap metal in China, and the higher environmental and social costs of iron and steel production in China.
Turkey: The rate of iron in Turkey is higher than the steel in Pakistan, due to the higher dependence of Turkey on the import of iron ore and scrap metal, the higher exchange rate of the Turkish lira against the US dollar and other major currencies, and the higher quality and standards of iron and steel products in Turkey.
US: The rate of iron in the US is higher than theiron in Pakistan, due to the higher labor and energy costs of iron and steel production in the US, the higher taxes and tariffs imposed by the US government on the import and export of iron and steel products, and the higher quality and standards of iron and steel products in the US.
Bangladesh: The rate of iron in Bangladesh is lower than the iron in Pakistan, due to the lower production and consumption of iron and steel in Bangladesh, the lower taxes and tariffs imposed by the Bangladeshi government on the import and export of iron and steel products, and the lower quality and standards of iron and steel products in Bangladesh.
Nepal: The rate of iron in Nepal is lower than the iron in Pakistan, due to the lower demand and supply of iron and steel in Nepal, the lower market prices of iron ore and scrap metal in Nepal, and the lower quality and standards of iron and steel products in Nepal.
Sri Lanka: The rate of iron in Sri Lanka is lower than the iron in Pakistan, due to the lower production and consumption of iron and steel in Sri Lanka, the lower taxes and tariffs imposed by the Sri Lankan government on the import and export of iron and steel products, and the lower quality and standards of iron and steel products in Sri Lanka.

Conclusion

In this article, we have analyzed the current and future trends of the rate of iron in Pakistan, and provided some recommendations for MWP Business and Presentation, a leading iron and steel supplier in Pakistan. The main findings and implications of the article are:

The rate of iron in Pakistan is influenced by various factors, both domestic and international, such as the production and consumption of iron and steel, the global market prices of iron ore and scrap metal, the exchange rate of the Pakistani rupee, the tax and tariff policies, and the quality and standardization of iron and steel products.
The rate of iron in Pakistan has fluctuated significantly in the past few years, reaching a peak of Rs. 165,000 per tonne in February 2021, and then dropping to Rs. 128,000 per tonne in September 2021.
The rate of iron in Pakistan is expected to increase in the near future, due to the rising demand from the construction, infrastructure, and automotive sectors, the recovery of the global economy from the COVID-19 pandemic, and the depreciation of the Pakistani rupee.
The steel rates in Pakistan are lower than the rate of iron in China, Turkey, and the US, but higher than the rate of iron in Bangladesh, Nepal, and Sri Lanka, due to the differences and similarities in the market prices, the exchange rates, the taxes and tariffs, and the quality and standards of other countries in the region and the world.
The iron and steel industry in Pakistan faces several opportunities and challenges, such as the potential demand from the CPEC projects, the low-cost housing schemes, and the auto development policy, the competition from local and foreign suppliers, the environmental and social impacts, and the policy and regulatory issues.

Based on these findings and implications, we have some recommendations for MWP Business and Presentation, a reputable and reliable iron and steel supplier in Pakistan, offering a wide range of iron and steel products, such as MS Deform Bars, MS Chowkat, MS Pipe, Iron, etc., at competitive prices and with excellent customer service. Some of the recommendations are:

Optimize the pricing strategy: MWP Business and Presentation should monitor the market trends and the customer preferences and adjust the prices of their iron and steel products accordingly, to maximize their profit margin and customer satisfaction. MWP Business and Presentation should also offer discounts, incentives, and loyalty programs to attract and retain their customers, and to increase their sales volume and revenue.
Improve the quality and customer service: MWP Business and Presentation should ensure that their iron and steel products meet the national and international standards, such as the PS 4569 for MS Deform Bars, the PS 3797 for MS Chowkat, and the PS 3796 for MS Pipe. MWP Business and Presentation should also provide prompt and courteous customer service, such as answering queries, resolving complaints, and delivering orders, to enhance their reputation and reliability, and to build long-term relationships with their customers.
Diversify the product portfolio: MWP Business and Presentation should explore new and innovative products and services, such as customized iron and steel products, value-added iron and steel products, and online iron and steel products, to cater to the diverse and changing needs and expectations of their customers, and to gain a competitive edge over their rivals.
Expand the market share: MWP Business and Presentation should seek new and untapped markets, both domestically and internationally. Such as the rural areas, the neighboring countries, and the emerging economies, to increase their customer base and market share. And to leverage the opportunities offered by the CPEC projects, the low-cost housing schemes, and the auto development policy.

Rate of Iron in Pakistan: A Comprehensive Analysis