Monitoring Desk
KARACHI: The manufacturers have raised the price of steel bars to an all-time high of Rs243,500 per tonne while requesting assistance from the government in opening letters of credit (LCs) out of concern for the closure of the industry.
They have done this by citing a continuous increase in raw material prices, disruption in the supply chain, and rising production costs. In a related development, the cost of cold-rolled or galvanized sheet, which is used to make home appliances and autos, has increased by Rs14,000 to Rs280,000 per tonne, according to local media.
Steel bar traders
According to a trader in steel bars, Faizan Steel raised the rates for 10mm-12mm to Rs242,500 and 16mm-25mm to Rs240,500 per tonne. He claimed that Agha Steel Industries also increased the rates for 10-12 mm and 16-32 mm steel to Rs 243,500 and Rs 241,500, respectively. Steel bar prices ranged from Rs224,500 to Rs225,500 per tonne for 10mm to 12mm and from Rs222,500 to Rs223,500 for 16mm to 25mm in the last week of December 2022. The previous high for steel bar prices was Rs236,000 per tonne, which was achieved in June 2022.
During the period of July to November, the nation’s imports of iron and steel scrap—the primary raw material used to create steel bars — fell dramatically to one million tonnes ($605 million) from 1.7 million tonnes ($978 million), a decrease of 36% in both quantity and value. However, the average per tonne (APT) price of imported scrap in the period of July to December 2022–23 was $563 as compared to $579 in the previous fiscal year.
The State Bank of Pakistan and the minister of finance have been urged by the Pakistan Association of Large Steel Producers (PALSP) to assist the struggling steel industry by ensuring the prompt opening of LCs.
