Karachi: The major companies including Aisha Steel, The International Steels, and Hadeed Pakistan has once again increased the prices of steel by PKR 3 per kilogram with effect from Monday (November 8), according to news sources.
As per the details, the prices of steel and other raw construction materials have further increased as the input costs surge, which has led the local steel industry to pass the added costs on to the consumers. Reportedly, since May 2021, the prices of steel have been increased five times, amounting to a total increase of PKR 36 per kilogram in the last six months alone.
In January 2020, the prices stood at PKR 109 per kilogram and in November 2021, the prices were up by PKR 100 per kilogram. It shows a 92% jump in the prices, which proves to be challenging to counter for the local manufacturers.
It is important to note that steel is an essential input material for several industries including spare parts, electronic appliances, and construction. According to sources, all scrap and iron ore for steel re-rolling mills are imported. Though the prices in the international market are going down, the local industry was unable to share this impact with the consumers. The manufacturing industry was forced to use local steel due to additional duty and anti-dumping duty on cheaper imports. As a result, it increases the cost for local manufacturing and consumers.
According to the Chief Executive Officer (CEO) of SM Engineering, local industries have not yet recovered from worse economic conditions. He said that high inflation after the pandemic and certain factors like rupee depreciation, high prices of petroleum products and raw materials, and increasing inflation rate are making it more challenging to counteract the price hike – a trend that’s like to continue for the foreseeable future.
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.
