KARACHI: Just two days before a meeting with caretaker Prime Minister Anwarul Haq Kakar on Thursday, manufacturers have further raised steel bar prices by Rs3,000-4,000 per tonne to offset rising cost of production.

A dealer at Sarya Market behind Civil Hospital quoted the price of Amreli steel bars in the southern region at Rs276,500 for size 9.5/10mm and 12mm, and Rs274,500 for sizes 16mm and above.

Faizan Steel informed customers of new rates at Rs272,000-274,000 per tonne on various sizes, citing fluctuations in operational costs of inputs and market conditions.

Last month, steel bar prices rose by Rs4,000 per tonne, ranging from Rs250,000 to Rs267,000, driven by claims from large steel producers about the increase in global iron and steel scrap prices.

PM pledges full support to steel industry growth

Steel bar makers had warned last month of more price shocks due to supply chain disruption after attacks on shipping vessels affected the Red Sea Europe route, resulting in increased insurance and freight costs.

One cannot disregard the positive impact of rupee appreciation against the dollar in the last four months, thereby reducing the landed cost of finished and imported raw materials, followed by a downward global price trend in iron and steel scrap from July to December 2023. On September 7, 2023, one dollar traded at Rs307.10 in the interbank market, compared to the current rate of Rs279.

Pakistan’s iron and steel scrap imports inched up to 1.320 million tonnes ($606m) in 6MFY24 from 1.318m tonnes ($706m) in the same period last fiscal year. The average per tonne price plunged to $459 from $535 in the same period.

PM meets PALSP

Prime Minister Kakar assured the Pakistan Association of Large Steel Producers (PALSP) delegation of the government’s full cooperation, directing relevant authorities to formulate policies supporting the steel industry to enhance its contribution to the economy.

He advised the industry to form a consortium and propose plans for the transformation of the steel industry, particularly focusing on the extraction of iron ores and the privatisation of Pakistan Steel Mills.

According to PALSP’s press release, Mr Kakar said SIFC is the best platform for the industry to suggest transformative measures and innovative ideas to boost the industry.

The PALSP highlighted concerns about the current challenges due to exorbitant interest rates and soaring costs, especially electricity prices.

Published in Dawn, February 16th, 2024