The price of steel is surging owing to shortage of raw material coupled with disruption in supply chain, which may deal a blow to the construction sector of Pakistan that has only recently begun recovering.
Amreli Steels recently informed its dealers that booking rates for the company’s steel bars had gone up by Rs2,000 per ton.
“The steel price has risen due to increase in the cost of production,” said Arif Habib Limited Head of Research Tahir Abbas in comments to The Express Tribune.
“Owing to the hike in steel prices in the international market due to shortage of raw material, the price of steel has jumped in Pakistan as well and it may rise further in future,” said Pakistan Association of Large Steel Producers (PALSP) Secretary General Syed Wajid Bukhari.
Steel scrap was earlier priced between $300 and $310 per ton, which has now escalated to $380 per ton, said JS Global analyst Arsalan Ahmed. He pointed out that there was also congestion at ports across the world on the back of Covid-19, therefore, the entire supply chain of steel was facing disruption, resulting in a spike in prices.
