Steel rebar prices in the country have experienced an increase of up to Rs3,000 per ton due to supply chain disruptions caused by the Red Sea crisis and a simultaneous rise in domestic utility prices.

Following this upward adjustment, retail prices for steel rebar now range from Rs263,000 per ton to Rs268,000 per ton. Producers are passing on the heightened production costs to consumers.

A series of missile and drone strikes on shipsin the Red Sea, attributed to Yemen’s Houthi militants, has resulted in significant disruptions to global trade.

A US-led force has increased naval patrols in response to these attacks, but the threat has prompted shipping companies to reroute a substantial portion of the Red Sea’s regular container traffic around the southern tip of Africa—a longer and more costly journey.

As of early January, with little indication of a de-escalation by the Houthis, container-ship fleets are avoiding the route, raising concerns about extended transit times and potential price hikes for various consumer goods.

The longer journeys may impact prices for items ranging from sneakers to food to oil. While there were initial worries about disruptions to energy flows, particularly regarding Europe’s reliance on tanker-borne gas as a substitute for Russian pipeline gas, the current impact has been limited.