Manufacturers increased steel bar prices to an all-time high of Rs277,000 per tonne, citing a severe currency devaluation and increased raw material costs.
Despite declining cement sales for July-December 2022-23, steel companies raised rates by Rs10,000 less than a week ago.
Construction costs have surged 60% in a year due to rising building material prices.
Amreli Steels Ltd. now charges Rs277,000 per tonne for 9.5/10mm-12mm and Rs275,000 for 16mm and beyond. However, the company is not accepting new orders due to raw material shortages.
Agha Steel Industries now charges Rs273,000 per tonne for 16-32mm and Rs275,000 for 10-12mm.
Naveena Steel Mills’ new rates for 16-32mm and 10-12mm are Rs273,000 and Rs275,000 per tonne, respectively.
Faizan Steel charges Rs275,000 for 10-12mm and Rs273,000 for 16-25mm for new orders, subject to confirmation. On the other hand, Itehad Steel upped 10-12mm and 16-12mm rates to Rs272,000 and Rs270,000, respectively.
FF Steel CEO Zarak K. Khattak told the local newspaper ‘Dawn’ that thousands of containers containing steel scrap remained at the port, including 150 of his company’s.
When asked why steel prices have risen so drastically, he said that imported consignments are cleared at the prevailing rupee-dollar parity. Still, banks are not releasing the documents, forcing manufacturers to buy scrap from the open market at exorbitant rates since the start of this month to run their units. “Scrap dealers, who also have old stocks, are now fully cashing in,” he continued.
He claimed currency and global scrap rates affect steel bar prices.
Mr. Khattak said several mills were running out of scrap stockpiles, and the situation would worsen after Feb. 20.
Due to the unstable dollar currency, banks are blocking new letters of credit. “Steel bar is the base of any building project, and any closure of the steel bar industries will lead to the collapse of industries like cement, sanitary, tiles, wooden work, aluminum, paint, etc.,” he said.
