Pakistan’s Mughal Steel advances 36.5MW captive plant, keeps copper on hold

Mughal Iron & Steel, one of Pakistan’s largest steel manufacturers, is ramping up its expansion drive with key projects, while keeping its copper segment on hold amid global volatility, with plans to eventually introduce value-added products once market conditions stabilise.

This was shared during a corporate briefing session held on November 13, 2025, which was attended by brokerage house Arif Habib Limited (AHL), as noted in a report.

AHL shared that the BMR of the bar mill is in progress, which “will convert the bar mill into a multi-purpose mill capable of simultaneously manufacturing rebars and mini sections”.

The mill is expected to be online in 2HFY26 with an estimated capital expenditure of around Rs2-3 billion.

Meanwhile, the company has successfully achieved a hydro test for the coal captive plant under the banner of Mughal Energy, with Commercial Operation Date (COD) expected by the end of CY25, stated the report.

Mughal Iron & Steel Industries completes acquisition of energy subsidiary

“The 36.5MW coal captive plant will help the steelmaker reduce its dependence on the national grid,” Nasheed Malik, a senior research analyst at AHL, told Business Recorder.

Regarding the outlook of the copper segment, the management of Mughal Iron & Steel said that the segment is on hold rather than scrapped.

The company has incurred substantial capex to set up an automated copper recycling plant. Plan is to introduce further value-added products in the non-ferrous segment,” read the report.

Malik informed that the copper recycling plant has remained nonoperational since the last two quarters. “The company plans to resume it; however, it has not given any timeline.”

Meanwhile, the company said that its non-ferrous segment is facing uncertainties due to price volatility in international markets and trade tensions between China and the US.

“Currently, full focus is on the Ferrous segment where management is expecting volumetric growth and better margins,” read the report.

Meanwhile, Malik informed Business Recorder that the company has not set any export target at present. “However, the management says they will resume it in the near future,” he said.

Incorporated in Pakistan as a public limited company on February 16, 2010, under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017), Mughal Iron & Steel Industries Limited’s operations comprise ferrous and nonferrous business segments. However, the principal activity of the company is the manufacturing and sale of mild steel products relating to the ferrous segment.