KARACHI: As the rupee continues its downward slide against the dollar, steel manufacturers have raised the prices to Rs100,000 per ton, the first time the prices have surpassed this mark.
Steel usage has been rising exponentially due to increased construction activity because of China-Pakistan Economic Corridor (CPEC).
As per Taurus Securities research analyst Hamdan Altaf, the most used steel G40 and G60 cost surpassed the Rs100,000 mark for the first time, reported Express Tribune.
Although, high-grade steel made on order could have sold above this price point before and the steel mentioned above was selling between Rs97,000-98,000 per ton.
The input of steel production is contingent on imports of raw material which also is susceptible to the value of the greenback in Pakistan.
Due to continuing depreciation of the rupee against the greenback in inter-bank and kerb market, the rise in steel prices was expected.
Mr Altaf said due to massive demand from the construction sector, the price hike isn’t going to impact sales.
Association of Builders and Development (ABAD) Senior Vice President Fayyaz Ilyas said demand would be unaffected, however, the lower-middle and middle-class segment would get hit.
ABAD SVP shared prices of cost-sensitive economic housing projects would be hiked, greatly impacting lower-middle and middle-income groups.
Mr Ilyas added aside from the rupee devaluation, the government had also enacted additional regulatory duties on import of raw material, which raised input prices in the construction sector.
Pakistan’s steel industry comprises of a complete and a closely intertwined value chain – from pig iron furnaces to downstream sectors and end-user industries.
There are at least 600 players in the industry,
