Industry News

Govt warned of rise in rebar prices

Views : 83
Update time : 2023-09-27 16:27:47

The steel sector, a pivotal pillar of economic infrastructure, relies heavily on electricity as a primary input, with power costs constituting over 50% of production expenses. The escalating electricity prices have already forced several steel units to shutter their operations while those still operational are functioning at a fraction of their capacity.

Pakistan Association of Large Steel Producers (PALSP) has repeatedly appealed to the government to provide electricity to the steel industry at reduced rates and foster maximum capacity utilisation instead of releasing payments to the independent power producers (IPPs) for unused electricity.

In FY2023-24, electricity consumers will collectively bear staggering capacity charges of Rs2.025 trillion, a burden exacerbated by idle power plants.

The industry faces the grim reality of poor agreements with these power plants, which stipulate that capacity charges must be paid even if government utilities fail to draw electricity from them. Adding to this crisis, Nepra recently green-lighted a Rs3.28 per unit increase in electricity rates for all consumers.

Related News
Read More >>
Ball Corporation confirms US aluminium tariff impact on its Q1 2025 net earnings despite improved shipments Ball Corporation confirms US aluminium tariff impact on its Q1 2025 net earnings despite improved shipments
May .08.2025
Ball Corporation confirms US aluminium tariff impact on its Q1 2025 net earnings despite improved shipments
India proposes tariff reductions on US imports India proposes tariff reductions on US imports
May .08.2025
India proposes tariff reductions on US imports
ArcelorMittal & WOLF GmbH partner for low carbon-emissions steel in HVAC industry ArcelorMittal & WOLF GmbH partner for low carbon-emissions steel in HVAC industry
May .08.2025
ArcelorMittal & WOLF GmbH partner for low carbon-emissions steel in HVAC industry
India issues new quality control order on 17 categories of aluminum products India issues new quality control order on 17 categories of aluminum products
May .08.2025
India issues new quality control order on 17 categories of aluminum products