Steel bar makers have increased the prices by Rs 2,000 per ton, sky rocketing the price to Rs 197,000 due to continuous rupee devaluation.
The price of steel bar was Rs 110,000-113,000 per ton one year ago i.e., In November 2020 which has now increased massively to Rs 197,500 per ton.
According to the statement of different steel bar manufacturers, the prices of steel bar has been increased by around 2,000 per ton. Naveena Steel Mills has come up with a rate of Rs 194,500 for 16-32 mm per ton and Rs 196,500 per tons for 10-12 mm sizes for deformed grade-60.
The prices of Faizan Steel Mill are now Rs 196,500 for 10-12 mm per ton and Rs 194,500 per ton for 16-25 mm. The new rates of Amreli Steel Ltd are Rs 197,500 per ton for 9.5/10 -12 mm and for 16 mm and above, the rates would be Rs 195,000 per ton (Deform and extreme rebars).
Syed Wajid I. Bukhari, the Secretary-General of Pakistan Association of Large Steel Producers has come with the logic for the rise in prices of steel that there are many reasons for price hike including the unprecedented increase in the cost of steel scrap globally, record rise in freight charges, big devaluation of local currency, very high rates of energy.
The States Bank’s measure to increase the interest rate to 8.75 percent too has raised the cost of doing business in the country.
As per the report of the Pakistan Bureau of Statistics, the import of iron and steel scrap came down year-on-year basis by 33 percent to 1.227 m tons during the first four-month the current fiscal year. Mr. Bukhari says that the current devaluation of the rupee has directly raised the cost to Rs 9,000 per ton.