Mughal Iron & Steel Industries Ltd (Mughal Steel) is accelerating expansion in its core ferrous operations while keeping its copper segment on hold amid global market volatility, the company said during a corporate briefing.
A major project underway is the BMR upgrade of the bar mill, which will transform it into a multi-purpose facility capable of producing both rebars and mini-sections. The upgraded mill is expected to be commissioned in H2 FY26, expanding Mughal’s long steel portfolio.
The company has also completed the hydro test for its upcoming coal captive power plant under Mughal Energy, with commercial operations targeted by year-end. These investments aim to boost efficiency and prepare for an anticipated 12-13pct rise in long steel demand in FY26-FY27, driven by higher federal and provincial development spending and reconstruction in flood-hit regions. Mughal expects strong demand for girders and sections, widely used in rural infrastructure and representing a 1.8-2 mln-ton market.
The ferrous segment remained Mughal’s revenue anchor in FY25, accounting for 82pct of sales, up 6-7pct YoY. Bar sales grew 20pct to 192,000 tons, while girder sales climbed 50pct to 120,000 tons. The company’s ferrous division revenue growth supported by a shift toward higher-value products. Management highlighted healthy margins, with imported scrap at USD 350-400 per ton versus finished steel near USD 800 per ton.
Meanwhile, the company’s copper recycling plant remains idled for the past two quarters due to price volatility and geopolitical tensions. The project is paused but not cancelled, with plans to restart and introduce value-added non-ferrous products once markets stabilize.
Mughal said its near-term focus will remain on the ferrous business, where it anticipates further volume and margin gains. Despite external risks, including macroeconomic conditions, commodity prices, security concerns and policy uncertainty, the company sees structurally strong steel demand in Pakistan, supported by housing needs, population growth, rural construction and increased government development spending.
