KARACHI: While seeking the government’s help in opening letters of credit (LCs) amid fear of industry closure, the manufacturers have pushed up the price of steel bars to an all-time high of Rs243,500 per tonne citing a continuous increase in raw material prices, supply chain disruptions and soaring production cost.

In another development, the rate of galvanised sheet or cold rolled sheet used in making home appliances and automobiles has been raised by Rs14,000 to Rs280,000 per tonne.

A steel bar dealer said that Faizan Steel increas­ed the 16mm-25mm rate to Rs240,500 per tonne and 10mm-12mm to Rs242,500.

He said that Agha Steel Industries also raised the 16mm-32mm rate to Rs241,500 and the 10-12 mm to Rs243,500.

In the last week of December 2022, the steel bar rates were Rs224,500-225,500 per tonne for 10mm-12mm and Rs222,500-223,500 for 16mm-25mm.

The previous record rate of steel bars was Rs236,000 per tonne hit in June 2022.

The country’s import of iron and steel scrap (the key raw material for making steel bars) during July-November of the current fiscal year plunged to one million tonnes ($605m) versus 1.7m tonnes ($978m), down by 36pc in quantity and 38pc in value.

However, the average per tonne (APT) price of imported scrap stood at $563 in July-December 2022-23 as against $579 in the same period last fiscal.

Pakistan Association of Large Steel Producers (PALSP) has urged the State Bank of Pakistan and the finance minister to help the troubled steel industry by ensuring the timely opening of LCs.

Published in Dawn, January 17th, 2023