Steel prices soar on rising raw material cost

Domestic steel producers on Monday announced to increase the prices of steel rebars by Rs 4,000 to Rs 6,000 per metric ton to rationalize in line with the international market. The price of steel rebars rose to Rs 201,000 per metric ton in the local market.

According to Pakistan Association of Large Steel Producers (PALSP) the prices of primary raw material of the steel industry (scrap) have increased by $ 120 per ton from $550 to $670 in a span of a few days in the world market. The unexpected increase in raw material has compelled the local steel producers to revise the prices of rebars upward.

One of the major factors behind this development is the war between Russia and Ukraine. After the Russian invasion, Ukraine steel scrap prices witnessed an immediate surge in the international steel scrap market.

This situation has sent shock waves the world over and the sanctions against Russia have a profound impact on the international steel market because Russia and Ukraine are one of the world’s biggest producers and suppliers of steel. Russia and Ukraine account for 74 percent of the world’s Wire Rod exports and it is feared that commodity prices can further jump beyond current levels.