The domestic steel re-bar prices are feared to cross Rs150,000 per tonne on massive surge in global scrap rates, which have gone up from $350 per tonne in October to $455 per tonne.
The industry sources say the higher steel prices could jeopardize the government’s plans to encourage the construction sector in general and housing in particular unless it takes immediate measures to help the steelmakers bring down their prices through reduction in their electricity bills and decrease in turnover/minimum tax. The industry needs the government’s assistance on a war-footing to survive, they say.The sources say the industry was struggling to cope with rising international scrap prices when the government raised the power tariffs by 10pc. “Global scrap prices are set to spike with growth in demand for ferrous scrap in China to 12 million tonne a year,” Wajid Bukhari, Pakistan Association of Large Steel Producers (PALSP) secretary general, said in a statement. “The increase of Rs4 per unit in the electricity tariff for Pakistan’s nascent steel industry will prove to be the proverbial last straw on its back and detrimental to the government plans for affordable housing for the low-middle-income people.”
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