Pakistan Steel: Profitability to suppress amid lower sales and higher raw material costs – By Foundation Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Both flat and long steel industry sales receded in 3QFY24. Decline in profitability is attributable to (1) lower sales for both long/flat steel players amid economic downturn, (2) dumping from FATA/PATA distorted the market price equilibrium for both long/flat steel, (3) hike in power &amp; gas tariffs, (4) long steel smuggling from Iran, (5) infiltration of ungraded long steel in the market and (6) seasonality factor along with elections &amp; Ramadan effect. ISL&rsquo;s profitability is anticipated to decline by 27/11% YoY/QoQ to Rs2.53/sh, while ASTL is expected to report LPS of Rs1.51 in 3QFY24.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Flat steel industry volumes have undergone a signif...