Hike in steel price by 20%, resulting in elevated construction cost

KARACHI: The rupee downgrading against US dollar impacts on the amplification of prices of all grades of steel, also increasing the cost of construction at extreme level.

It is observed that the cost of superior quality rebar is around Rs107,000 to Rs110,000 per ton, which was Rs97,000 per ton in the month of April 2018.

According to sources, Amreli Steels has hiked the rebar value by almost 4% that is Rs4000 per ton, making the new price as Rs107,000 per ton. Steel prices are fluctuating since February 2018, making it a total of around 20% increase in price index mainly due to regular depreciation of rupee value.

Pakistani rupee has devalued against US dollar by 22% from the past several months, this started in December 2017. However, the price difference comparatively to local steel and imported one is touching to 20%.

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The increase in steel prices are likely to effect  the cost of construction for household.  However, the hike in rebar prices will not put much damage to the sales as construction business is flaunting nowadays as several dams are also under planning for their construction while others are in completion phase.

The cement prices are already touching sky level, which has further effected construction by almost 10% amplification in the last six months. Also the value of tiles and sanitary material has become more expensive by almost 5% to 6% due to deflation of rupee against US dollar.