Steel Prices in Pakistan Surge by 70% Since April 2020
The Express Tribune reported that a steep increase in steel prices in Pakistan is taking its toll on the economy, which has just started showing signs of a
The Express Tribune reported that a steep increase in steel prices in Pakistan is taking its toll on the economy, which has just started showing signs of a turnaround, stoking fears that if the steel prices continue to rise, it can undo all the recovery made so far. Seel prices in Pakistan have gone up by 70% in just one year, which has put immense pressure on automobile, home appliances and other allied sectors to increase prices of finished products. According to market players, the prices of steel stood at PKR 105,000-110,000 (UD 675-710) in April 2020, however, it surged to PKR 144,000 (USD 925) at the start of 2021 and now steel is being sold for PKR 186,000 per tonne (USD 1200).
Steel importer Mian Rameez Ahmad told The Express Tribune “There are various factors behind the steep hike in steel prices and the primary reason is the rise in global steel prices on the back of Covid-19. Besides this, fluctuation in dollar rate is another reason.”
He elaborated that most of the steel stock being sold in the market was imported when the rupee was equal to 165 to the US dollar, hence, businessmen were trying to cover losses by hiking prices. Previously, the traders used to import steel of different types in a single cargo and paid minimum duty, however, Customs authorities now charge the full tariff applicable to the type of steel being brought into the country.