Karachi: The steel producers have hiked the prices of steel bars for the second time in a week, bringing the price to PKR 208,000 per tonne, news sources reported on March 14. The manufacturers have associated the price increase with severe supply chain restrictions, energy expenses, and input and utility costs.
According to reports, steel manufacturers increased the price by PKR 8,000 in a week. The Sensitive Price Index (SPI) reported a 5% increase in cement prices over the last week, bringing the per bag price to PKR 787 from PKR 749. The new price is 29.30% higher when compared to the same month last year.
According to the market study, the report has warned of a significant increase in construction-related costs, which would result in a slowdown of the industry, on which 37 other sectors rely. Speaking on the development, the former head of the Association of Builders and Developers (ABAD) Hassan Bakhshi stated that the price increase would impact modest homeowners, whose costs have jumped by up to 40%. Steel costs, according to Bakshi, have climbed by 65% since 2020, causing a severe slowdown in the sector.
He asked the government to remove the regulatory duty on steel bar imports to reduce construction costs. Steel bar producers have recently raised their pricing, citing rising fuel prices and freight charges for scrap and raw materials. In addition, the government has stated that rising international oil costs will drive up prices even more.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
