Manufacturers have increased the price of steel bars by up to Rs 8,000 to above Rs 208,000 per tonne in less than four days.
During and after the Covid-19, the economies of the world are passing through the phase of difficulties. The commodities price trend is moving higher and higher, and it is hard to predict when the pressure on the prices will be released.
The situation has aggravated due to the war between Russia and Ukraine. The prices of oil and steel scrap have particularly gone very high. Russia and Ukraine, both are suppliers of five million tons of steel to the world.
Meanwhile, prices of steel in Pakistan have become almost more than double during the recent past. The price of steel bars in November 2020 was Rs 110,000-113,000 per ton which is touching the figure of more than Rs 2,00,000 per ton.
Read more: Construction cost goes up amid cement, steel price hike
Prime Minister, Imran Khan has given high incentives to the housing and construction sector so as to generate economic activities in the country, especially during and after the Covid-19.
The policy of the Prime Minister proved quite fruitful as the construction and related sectors progressed very well during the last about two years. But the hike in the prices of steel and cement has created a problematic situation in the country.
The price of cement has gone to Rs 787 per 50 kg bag than the price of cement two weeks ago.
As far as the prices of steel bars are concerned, the prices of Faizan Steel have gone up to Rs 208,500 for 10 mm-12 mm bars and the price of 16-25 mm bars has gone to 206,500 only in a week. The price of Agha Steel Industries is Rs 207,000 for 16 mm and above and the price of 9.5 mm -12 mm bars has gone to Rs 209,000 just in a week’s time.
Hassan Bukhari, the former Chairman of the Association of Builders and Developers (ABAD) said that the construction cost has increased by 60-65 percent since November 2020. The cost of all related items such as steel bars, aluminum, wood material, sanitary, tiles, and marble including labor charges have gone extremely high.
He further said, “Currently, steel prices in China hover between $750-800 per ton and the local makers are taking advantage of the regulatory duty protection by coming out with frequent prices increases in absence of any check by the government.”
The economic analysts are of the view that the hike in prices of the construction material would ultimately slow down the pace of the economy.