Pakistan Steel Bar Industry

Amreli
Steels Steel Bars Market Share Aagha Steels Limited
Limted
4%
5% Mughal Steel
8%

50%
Imports
33%

(Jabri, 2017)Steel Industry

The country does not have a stable steel industry. According to world steel organization
Pakistans contribution to steel manufacturing was 0.1% in 2008 which has dropped to 0.06% in
2015. ( http://aurora.dawn.com/news/1141380) The industry very low production as compare to
two of her neighbor China which leads the market having annual production of 804 million
metric tons in 2015 making 50% of overall steel production and India with 90 million metric tons
contributing almost 5.5%. (http://www.worldatlas.com/articles/the-top-10-steel-producing-
countries-in-the-world.html) and
(https://en.wikipedia.org/wiki/List_of_countries_by_steel_production). There are 475 steel re-bar
making units in Pakistan.The above comparison also include sub graded steel Re-bar. Only
10% of local production meets quality standards with rest falling in ungraded, unrecognizable
and untraceable material. (https://www.dawn.com/news/1289189). The industry is not regulated
properly giving room for low quality standards as well as smuggled products from neighboring
countries (https://www.dawn.com/news/1289189).

Having a look into consumption of steel in Pakistan. As the industry is struggling in production it
also has a very low level of consumption as compare to other countries. It has consumption of
23.5 Kilograms of finished product per capita as compare to the world average of 216.9
Kilograms which is only 10.8% of worlds average.
(http://www.sbp.org.pk/reports/quarterly/fy16/Second/Topical.pdf) . As well the comparison of
steel consumption with two neighboring countries is given below.

( https://tribune.com.pk/story/216613/pakistan-among-lowest-consumers-of-steel/)

The biggest threat for local steel industry is imports from China at cheap prices as Pakistan has
a free trade agreement (FTA) with her neighbor china. The local industry has anticipated to
boost due to the upcoming development projects for example CPEB (China Pakistan Economic
Corridor) which is an investment of 46 billion USD.