September 08, 2008

Pakistani steel makers to use domestic iron ore

The News reported that Pakistan’s steel industry is chalking out plans to tap supply line of local iron ore and produce inexpensive steel as soaring international steel prices are eating up steel industry margins threatening its very survival. Soaring international steel prices are bringing changes in the steel industry that depends on imported raw materials and imported steel due to high demand and low production.

Mr Zaigham Adil Rizvi projects directory of Tuwairqi Steel Mills said that "We are seriously working to chalk out plan of using iron ore from Kalabagh and other reserves. Using local iron ore is an effort for the survival of steel industry of Pakistan."

Pakistan Steel Mill is using iron ore from Chaghi, Balochistan apart from this there are many other places where PSM is working to get raw material. It had conducted its own study to find out the total steel production of Pakistan that was estimated at around 5.5 million tonnes in which long products share around 4 million tonnes and flat products accounts from 1.2 to 1.5 million tonnes.

At present local steel mills are using scrap or imported raw material to make steel, unfortunately scrap and imported raw material both have seen rise in prices, the rising iron ore prices are making it unviable to produce cheap steel products in Pakistan.