Karachi: According to news sources, major businesses such as Aisha Steel, The International Steels, and Hadeed Pakistan have increased steel prices by PKR 3 per kilogramme with effect from Monday (November 8).
According to the details, as input costs rise, steel and other raw construction materials prices have risen much more, forcing the local steel sector to pass the additional costs on to consumers. Steel prices have reportedly climbed five times since May 2021, equal to a total increase of PKR 36 per kilogramme in just the last six months.
Steel is a key input material for a variety of sectors, including spare parts, electronic appliances, and construction. All scrap and iron ore for steel re-rolling factories is imported, according to sources. Despite the fact that prices in the worldwide market are falling, the local industry has been unable to pass this benefit on to consumers.
Due to higher duties and anti-dumping duties on cheaper imports, the industrial industry was forced to employ local steel. As a result, local manufacturing and consumers face higher costs.
Local industries, according to SM Engineering’s Chief Executive Officer (CEO), have not yet recovered from the recent economic downturn. He claims that high inflation following the pandemic, as well as other factors such as rupee depreciation, high prices of petroleum products and raw materials, and rising inflation rates, are making it more difficult to combat price increases – a trend that is expected to continue in the near future.