July 14, 2007	Saturday	Jamadi-us-Sani 28, 1428

KARACHI, July 13: Iron and steel traders have urged the government to look into the looming problem of acute shortage of steel products, which may hamper construction activity in the country.

They also suggested that the government should immediately set up mini steel mills in the country to feed the foundries and furnaces to avert major crisis of steel shortage.

Since Pakistan Steel is not in a position to meet the growing requirement of steel in the country and merchants have to import from these products from various countries to meet their growing requirements of billets and re-rollable scrap to make various items for the market, they added.

There is also shortage of steel and steel products in the world market and foreign mills are not inclined to offer or make commitments with the importers thereby causing further shortage of steel in the domestic market.

The foreign steel mills are presently quoting $50 per ton for billets, around $450 per ton for re-rollable scrap and around $350 per ton for scrap but still they do not make firm quotations for prompt shipments.

The Union of Small and Medium Enterprises (Unisame) has approached the ministry of production, industries and special initiatives to take measures for increasing production of iron and steel.

President Unisame Zulfikar Thaver has urged the government to examine the situation seriously and direct the Pakistan Steel Mills to increase its capacity and adopt open policy to sell their production to buyers on first come first served basis and not only to the selected buyers.