Demand for construction steels to increase further in Pakistan
----Interview with Ansar Hussain Rizvi
Head of Plant
Amreli Steels Limited
- Located in Karachi, Amreli Steels Limited is one of the largest manufacturers of Steel Reinforcement Bars in Pakistan. The Amreli family has been in the business of steel manufacturing for over 50 years. With its priceless contribution to the nation’s infrastructure, Amreli Steels Limited has become a household name in Pakistan’s construction industry.
- Asian Metal: Please make an introduction of your company.
- Ansar: Amreli Steels Limited is one of the largest manufacturers of Steel Reinforcement Bars in Pakistan. Situated in the industrial hub of Karachi, our plant uses one of the most modern hot re-rolling mill technologies in the industry and is capable of continuously producing straight bars up to 30 tons per hour. This translates to 180,000 tons per annum, and next year we shall upgrade our mill to 275,000 tons per annum. Other than that, our new rolling mill having an annual capacity of 450,000 tons is in commissioning face.
- Asian Metal: How is the steel industry going on in Pakistan? What are your company's superiorities over other steel mills?
- Ansar: Construction steel industry is growing in Pakistan. Although there are plenty of rolling mills in Pakistan, but there are very few high productivity plants. Owing to the increasing demand, modern plants are being set up both in Sindh and Punjab provinces. Amreli Steels is the largest producer of concrete re-enforcement bars in Pakistan with no compromise on quality. Our objective is to become a million ton producer of steel bars in Pakistan.
- Amreli Steels is also the pioneer of Quenched and Self-tempered bars in Pakistan. We were also the first ones to adopt the slit rolling technique in the country.
- Asian Metal: Whether your company is facing any challenge at present? What are you focusing on for an improvement?
- Ansar: The challenge that we face today is the ever increasing demand for construction steel. We are continuously striving to increase our capacity in order to meet the market demand.
- Asian Metal: In 2017, the steel market in China was not too bad and steel mills gained profits. Among all steel products, construction steels are the most profitable. How about the steel market in Pakistan last year?
- Ansar: As I have mentioned, there are plenty of huge infrastructure products going on in Pakistan, the demand for construction steel is continuously on the rise. The country’s steel demand is expected to rise at a 3-year (FY17-19) combined annual growth rate (CAGR) of 15pc compared to the last 3-year’s CAGR of 14pc.
- Asian Metal: Could you introduce the price trend for rebar in Pakistan in Q1 of this year? What is your prediction for the coming Q2？
- Ansar: We have seen a rising trend in the re-bar prices (in PKR) during the last quarter, the reason being the increase in the price of US dollar against PKR. The cost of melt-able scrap has risen substantially. The same trend is expected to prevail in the next quarter too.
- Asian Metal: Last year, Pakistan began to collect anti-dumping taxes for imported rebar from China. What is the influence to the market in Pakistan?
- Ansar: It was imperative to impose an anti-dumping duty, the reason being that the import from China was badly affecting the local industry, which in turn was affecting the unemployment rate in Pakistan. If a product can easily be manufactured within the country, then there is no reason for importing it from abroad.
- Asian Metal: I learnt that the import volume for steels went up even though Pakistan restricted imported steels from China. Does it mean the demand for steels is increasing in Pakistan? Whether it benefits from the China–Pakistan Economic Corridor?
- Ansar: Yes, demand of construction steel is increasing in Pakistan. China-Pakistan Economic Corridor had catalytic effect on it.
- Asian Metal: Thanks so much for your time. Wish you and your company a great success in the future.
