Karachi: Arif Habib Group Limited held a corporate briefing session on November 13, 2025, highlighting the recent developments and challenges in both the international and local steel markets. The briefing detailed the company’s performance metrics and strategic positioning amidst global and local market fluctuations.
In the international arena, the steel market experienced significant disruptions due to new U.S. tariff measures and the subsequent reactions from various countries. However, the market has been entering a phase of adjustment with signs of stability and a gradual recovery in demand across key regions such as the U.S. and Europe. The Hot Rolled Coils (HRC) prices, which declined from around US$ 530 FOB China in July 2024 to US$ 450 by June 2025, have shown signs of recovery following China’s production restrictions aimed at reducing environmental pollution. The prices remained largely stable during the July-September 2025 quarter, fluctuating around US$ 475 FOB China.
Locally, the steel demand in Pakistan demonstrated a robust recovery, particularly in the flat steel segment, which includes Cold Rolled Coils (CRC) and Galvanized Iron (GI). The consumption of these products rose sharply from 570,000 tons in the fiscal year 2022-23 to 1,049,000 tons in FY 2024-25, marking an 84% increase. Despite this growth in demand, local producers only achieved a marginal 3% increase in sales. In contrast, imports surged by approximately 148%, driven primarily by the continuation of sales tax exemptions for the FATA/PATA regions during FY 2024-25. From FY 2025-26, these imports will begin to attract a 10% sales tax, which will gradually increase to the standard rate.
According to information available from the Pakistan Stock Exchange (PSX), the Arif Habib Group reported a sales figure of 9.46 billion PKR in the first quarter of FY 2026. The cost of sales amounted to 8.54 billion PKR, resulting in a gross profit of 922.01 million PKR. The company’s operating profit stood at 532.34 million PKR for the same period. Notably, the profit after taxation for Q1 FY 2026 was recorded at 82.04 million PKR, reflecting a positive turnaround from the loss of 1.35 billion PKR reported in FY 2025.
Macroeconomic factors also played a significant role in the company’s financial landscape. The Karachi Interbank Offered Rate (Kibor) experienced a very large or significant move, declining by 45.45%. Meanwhile, fluctuations in currency exchange rates were observed, with the USD, EURO, JPY, and CNY experiencing changes categorized as moderate move, very large or significant move, very large or significant move, and big move, respectively.
Overall, Arif Habib Group Limited navigated a challenging market environment marked by significant import competition and fluctuating international steel prices. The company’s strategic adjustments and market insights will be crucial as it continues to address both local and global challenges in the steel industry.