Rupee devaluation effects Steel prices- Crossed Rs 100,000 per ton

KARACHI: Rupee shows continuous downward skim against the dollar, resulting in augmented steel prices at a record towering of Rs100,000 per ton, for the first time in the history of this industry.

Nowadays, steel is widely consumed due to profound construction activities due to China-Pakistan Economic Corridor (CPEC).

It is observed that high-grade steel made on order can also be sold at the price level higher than the above mentioned, but the same quality of steel was previously sold between Rs97,000-98,000 per ton.

The contribution of steel production is dependent on imports of raw material which also is liable to the value of the US dollars in Pakistan.

According to experts, the rise on steel and related products was duly expected, due to continuing depreciation of the rupee against the greenback in inter-bank and kerb market. Also, this much hike in the steel prices will not matter, as nowadays, steel is more in demand due to amplification in construction.

Association of Builders and Development (ABAD) Senior Vice President Fayyaz Ilyas said demand would be unaffected, however, the lower-middle and middle-class segment would get hit.

ABAD SVP shared prices of cost-sensitive economic housing projects would be hiked, greatly impacting lower-middle and middle-income groups.

Pakistan’s steel industry comprises of a complete and a closely intertwined value chain – from pig iron furnaces to downstream sectors and end-user industries.

There are at least 600 players in the industry,

According to reports, Pakistan has a shortfall of 12 million housing units in the country and generally, the lower-income strata of the country’s population is in need of these housing units. Around 0.4 to 0.7 million units add to this number each year.