KARACHI: The Pakistan Association of Large Steel Producers (PALSP) on Monday claimed that local steel bar prices are 24 per cent less when compared with US domestic prices and approximately 17-25pc less than the rates in Turkey and China, respectively.

PALSP Secretary General Syed Wajid Bukhari said computing the lowest June 2021 free on board (FOB) price of rebars globally, Turkey at $770 FOB would equate to approximately $1,120 Cost and Freight (CNF) with 17pc GST without any duties added (i.e. $770 FOB + $60 Freight + 5pc handling and LC charges plus 10pc importers gross margin plus 17pc GST). Whereas, local steel manufacturers are selling bars today at prices of Rs150,500 per tonne including 17pc sales tax, equating to $950 – which is 17pc cheaper than Turkish rebar).

He said the prices of steel scrap in international market had almost doubled in single year from June 2020 to June this year. The average monthly price of steel scrap as per London Metal Exchange (LME) in June 2020 was $260 which reached to $515 per tonne in June 2021. Similarly, he added, that prices of steel rebar as per LME last year was $420, whereas in June 2021 FOB prices (excluding freight charges, local duties and taxes) in Turkey at $770 and in China at $898.

Published in Dawn, June 29th, 2021