KARACHI, Nov 30: The "unrealistic" increase in steel prices would push up construction cost of the housing units as well as dams, bridges and public sector projects.

On an average, steel and steel products comprise 35 per cent of construction cost of any housing unit, chairman Association of Builders and Developers, Babar Mirza Chughtai said in a letter to chairman Monopoly Control Authority (MCA), Safdar Mahmood.

He said that steel price hike had been enhanced at a very crucial juncture when housing sector was on take-off position. Construction of many housing projects has come to stand-still, thus making thousands of workers on the brink of losing their livelihood.

Moreover, due to suspension in construction activities, several other industries that are directly or indirectly related to construction industry are incurring losses.

Steel prices, which were averaging at Rs38,000 per ton, suddenly rose to 68,000 and then prices reverted to Rs39,000. He said that the increase in steel prices could not be checked unless and until the cartel made by steel dealers existed. Babar said that the MCA had not played its due role in monitoring the steel prices besides failing to check the activities of the cartel of steel dealers.