Karachi: According to media sources, Amreli Steels Ltd (ASL) declared a PKR 5,000 per tonne rise in steel bar prices, which has increased building costs. In the northern region, this trend of rising prices was followed by an increase in cement prices.
According to current information, the top steel company announced a new booking rate of PKR 167,000 and PKR 165,000 for two steel types, effective August 6. It was also revealed that from November 2020, steel bar producers in Pakistan had increased their pricing by PKR 57,000 per tonne.
Furthermore, Tahir Abbas, the Head of Research at Arif Habib Ltd (AHL), revealed that typical cement costs in the northern region have risen by 3.5 percent, from PKR 644 to PKR 666 per 50kg bag. The most significant price increase was in Bannu, where the bag costs PKR 670. Cement prices jumped by 4.6 percent and 5.1 percent in Lahore and Islamabad, respectively. Prices in the southern region, on the other hand, have remained steady.
According to Abbas’ knowledge, the increase in cement prices was due to a surge in coal prices, which have doubled since 2020.
Syed Wajid Bukhari, Secretary General of the Pakistan Association of Large Steel Products, stated the three causes for the rise in steel bar pricing when speaking to the media. To begin with, the dollar price has risen in recent months from PKR 158 to PKR 164. Second, the increase in Regasified Liquefied Natural Gas by 20%. (RLNG). Finally, in order to improve sales tax collection, the Federal Board of Revenue (FBR) increased the minimum value of steel bars to PKR 140,000 per tonne.
Hassan Bakhshi, the former Chairman of the Pakistan Association of Builders and Developers, has stated that the cost of building a high-rise structure has increased by 20% to 25%.
He went on to remark that the government should take initiatives to lower steel bar prices in order to encourage construction-related activities.