The domestic prices of steel products have surged by Rs. 5,000 per ton, pushing the cost of steel rebar to as high as Rs. 273,000 per ton.
This increase, announced by local steel producers, came into effect on July 1, 2024.
According to JS Research, the new price range for steel rebar now stands between Rs. 262,000 and Rs. 273,000 per ton. This hike is attributed to the anticipated increase in electricity rates, which the government is expected to announce in the coming days.
Industry insiders revealed that producers have decided to pass on the impact of these expected higher electricity tariffs to consumers. The increase in energy costs, a significant component in steel production, has been a critical factor in this price adjustment.
The construction sector, already grappling with high costs, is likely to face additional pressures due to this price hike. Experts warn that any disruptions in the procurement of raw materials could further exacerbate the situation, potentially leading to even higher prices in the future.
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