KARACHI: In an effort to offset growing production costs, producers have increased the price of steel bars by an additional Rs3,000–4,000 per tonne, just two days before a meeting with acting prime minister Anwarul Haq Kakar on Thursday.
Amreli steel bars in the southern area are priced at Rs276,500 for sizes 9.5/10mm and 12mm and Rs274,500 for measures 16mm and larger, according to a vendor at Sarya Market, which is located behind Civil Hospital.
Faizan Steel notified clients of the revised prices, which range from Rs. 272,000 to Rs. 274,000 per tonne for different sizes, citing changes in input costs and market dynamics.
The prices of steel bars increased by Rs4,000 per tonne last month, from Rs250,000 to Rs267,000, due to the assertions of major steel companies on the rise in the price of iron and steel waste globally.
PM promises total backing for expansion of the steel sector
Manufacturers of steel bars had issued a warning last month about additional price shocks brought on by supply chain disruptions following attacks on cargo boats that impacted the Red Sea Europe route, raising the prices of freight and insurance.
It is impossible to ignore the rupee’s strengthening value relative to the dollar over the past four months, which has decreased the landed cost of finished goods and imported raw materials. This will be followed by a global trend of declining prices for iron and steel scrap from July to December 2023. In the interbank market on September 7, 2023, the value of one dollar was Rs307.10, as opposed to the present rate of Rs279.
Imports of iron and steel scrap from Pakistan increased marginally to 1.320 million tonnes ($606 million) in 6MFY24 from 1.318 million tonnes ($706 million) during the same period in the previous fiscal year. During the same time period, the average price per tonne fell from $535 to $459.
PM and PALSP meet
Assuring the delegation of the Pakistan Association of Large Steel Producers (PALSP) of the government’s complete cooperation, Prime Minister Kakar directed pertinent authorities to develop policies that promote the steel industry and increase its economic contribution.
He recommended that the steel sector establish a consortium and put forth proposals for the industry’s reform, with a special emphasis on iron ore extraction and Pakistan Steel Mills’ privatization.
In a news statement issued by PALSP, Mr. Kakar stated that SIFC is the ideal forum for industry suggestions of game-changing policies and creative ideas to advance the sector.
Concerns over the present difficulties brought on by excessive interest rates and skyrocketing expenses, particularly for power, were brought up by the PALSP.
SOURCE: DAWN NEWS
