Makers raise steel prices amid dull demand

Pakistan Association of Large Steel Producers (PALSP) General Secretary Syed Wajid Bukhari claimed that the new rates of steel bars hovered between Rs250,000-262,000 per tonne depending on the quality.

He said some loss-making mills could not pass on the needed increase due to low demand. Several units have closed recently and many declared losses and most of the mills are working on 30pc production capacity. “The steel industry is facing its worst crisis after 2008,” he claimed.

He attributed the price hike to a $20-25 per tonne rise in scrap prices in world markets due to the usually low collection of scrap in the winter.

Mr Wajid feared more price hikes due to supply chain disruption as the Red Sea Europe route was affected after attacks on shipping vessels, resulting in a rise in insurance and freight costs.

Some steel dealers said the increase in prices didn’t take effect in real terms amid sluggish demand caused by a construction slowdown in winter. Some dealers were clearing their stocks at old rates.