Steel Bar Prices Surpassed 1.5 Lakh Per Ton
Steel bar makers raised prices by Rs5,000 per ton to Rs150,500-151,500 per ton on Thursday, citing an unexpected rise in foreign scrap prices as the first post-budget blow to consumers.
Manufacturers had raised prices by Rs3,000 to Rs146,500 per ton before the Budget 2021-22. Steel bar manufacturers had warned the building industry that increased steel scrap prices on the global market had impacted their production costs.
The overall price increase to date is Rs38,000-40,000 per ton, based on steel bar cost of Rs110,000-113,000 per ton in November 2020.
Hassan Bakhshi, the former chairman of the Association of Builders and Developers of Pakistan (ABAD), expressed concern that Prime Minister Imran Khan’s dream of providing low-cost housing to the masses through the Naya Pakistan Housing Scheme would be unlikely to emerge due to the persistent and unchecked rise in steel and cement prices. To break the steel bar mafia, he urged the government to allow imports of steel bars with lower duties and taxes.
Mr. Bakshi stated that the cost of building a high-rise project has grown by 10-15% due to a 50% increase in steel bar costs in the last one-and-a-half years when steel bar prices were Rs100,000 per ton. Steel bars account for 40-45 percent of a high-rise project’s total construction cost.