Steel bar prices hit a record high; above 150,000 per tonne

Steel bar prices hit a record high; above 150,000 per tonne

Karachi: Continuous rise in construction activity has caused a significant leap in steel bar prices. In the last week of May, steel manufacturers stopped taking orders from developers calling for higher steel prices. This rise in steel prices subsequently causes a rise in overall construction costs. Higher prices are anticipated to have a major impact on the ongoing projects of the construction sector.

Construction companies in Pakistan have been neglected for the past seven decades however, the current government has for the first time taken initiative. Amidst the pandemic last year Imran Khan introduced a new construction package to improve employability.

 Prime Minister Imran Khan previously declared that a Construction Industry Development Board will be set up to nurture this major sector of Pakistan. He also foretold a strategy to facilitate daily wagers and those who are unable to pay rents. These are part of the government’s objectives to pursue further development of the construction and Real estate sector.

These Recent efforts, however, caused a rise in construction activity and increased the demand for construction and building material. Steel, in particular, has witnessed a major impact.

During Mid-May a sudden surge in international scrap prices was claimed by the steel bar manufacturers, this called for an increase in domestic steel bar prices. Ever since November 2020, the steel market has seen around Rs 40,000 worth of spike in prices. This ongoing surge is expected to affect the government’s Naya Pakistan Housing scheme as well.

Sensing the tension the government of Pakistan offered a special package including an amnesty scheme. Imran Khan suggests that a reduction in steel and scrap import taxes will bring down the steel bar prices and ultimately stabilize the market. 

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