Karachi: Amreli Steels Ltd (ASL) announced a PKR 5,000 per tonne surge in the prices of steel bars, which has resulted in an increase in construction cost, according to media reports. This trend of increasing prices was followed by a rise in cement prices in the northern region.
As per details available, the leading steel manufacturer stated that the new booking rate of two steel qualities was PKR 167,000 and PKR 165,000 respectively with effect from August 6. It was also informed that the manufacturers in Pakistan have increased the prices of steel bars by PKR 57,000 per tonne since November 2020.
Moreover, the Head of Research at Arif Habib Ltd (AHL) Tahir Abbas stated that the average cement prices in the northern region had increased by 3.5% from PKR 644 per 50kg bag to PKR 666. The highest price surge was seen in Bannu, where the bag costs PKR 670. The cement prices in Lahore and Islamabad increased by 4.6% and 5.1%. However, the prices in the southern region remain unchanged.
As per the information share by Abbas, the increase in cement prices was because of the rise in coal prices, which has doubled since 2020.
While talking to the media, Pakistan Association of Large Steel Products Secretary General Syed Wajid Bukhari revealed the three reasons that led to the increase in steel bar prices. Firstly, the dollar price has increased from PKR 158 to PKR 164 in the last few months. Secondly, the 20% increase in Regasified Liquefied Natural Gas (RLNG). Lastly, the Federal Board of Revenue (FBR) has increased the minimum value of steel bars to PKR 140,000 per tonne to increase revenue from sales tax.
Additionally, the Former Chairman Association of Builders and Developers of Pakistan Hassan Bakhshi informed that the construction cost on a high-rise project has surged by 20% to 25%. He went on to say that the government should take steps to decrease the prices of steel bars to boost related activities in the construction industry.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
