Ahmed Mukhtar Naqshbandi
ISLAMABAD/KARACHI: A sense of anxiety prevails in Pakistan’s steel industry hit a record low in a decade with the import of scrap steel plummeting, indicating a low level of activity in the construction sector that employs most unskilled workers.
The Pakistan Association of Large Steel Producers (PALSP) earlier convened an emergency meeting to discuss the issue. The meeting was attended by leading players from the steel industries including, Naveena Steels, Nomee Steels, Mughal Steels, Amreli Steels, Agha Steel Industries, FF Steels, Faizan Steels, Karachi Steels, Ittehad Steels, Pak Iron, Kamran Steels and Pak Steel.
Steel import down
PALSP Secretary General Wajid Bukhari said that during the meeting, the steel industry leadership expressed profound concerns about the ongoing industrial and economic condition as they were worried about rupee depreciation, depleting foreign reserves and curbs on LCs and a significant increase in the cost of production.
According to the PALSP, the local dispatch of cement was down by only 9 per cent, standing at 3.67 million metric tonnes for the month of December year-on-year whereas steel scrap import was down by a record 55 per cent year-on-year to 191,000 metric tons for the same month.
Wajid said that that was the sharpest year-on-year drop in the last 10 years, suggesting industrial shutdowns.
He warned that the country could witness a massive steel and iron shortage in the coming months. If the State Bank of Pakistan restrictions lasted longer than four days, the price of steel rebar could increase by Rs280,000 per ton, he said.
