KARACHI: The manufacturing of iron as well as steel, with billets/ingots generally made use of in the building sector, in the last one decade swelled by 196 per cent to 4.777 million tonnes in FY21 from 1.616 m tonnes in FY12.
H/CR sheets/strips, coils/plates, additionally called flat steel products for production of electronic devices, surged to 3.296 m tonnes in FY21 from 1.850 m tonnes in FY12, Pakistan Bureau of Stats (PBS) information of Large-Scale Manufacturing (LSM) showed.
Increasing production of steel relevant items has brought about greater imports of basic materials. For making steel bars, the nation’s iron and steel scrap imports in FY21 rose to 4.719 m tonnes costing $1.86 bn from 1.568 m tonnes valuing $538m in 2011-12, the PBS numbers revealed.
Besides, iron and steel imports swelled to 2.992 m tonnes amounting to $1.959 bn in FY21 from 1.755 m tonnes ($1.4 bn) in 2011-12.
Discussing climbing demand for steel bars, Pakistan Organization of Large Steel Producers Secretary General Syed Wajid Bukhari claimed steel bar manufacturing till 2011-12 was about three to 3.5 m tonnes while the existing demand now floats between 6.5 m tonnes to 7m tonnes.
He connected rise in steel bar costs to rising scrap prices on the planet market to $550 per tonne from $300 per tonne while one dollar is now equal to 168 as compared to Rs85 in 2011-12.
He said gas cost enhanced to Rs97 per unit from Rs15 per unit in the last ten years complied with by power tariff to Rs21 per unit from Rs6 each. Freight fees are 100 per high now.
Mr Bukhari was of the view that steel bar need would certainly rise to 9 to 10 million tonnes by 2023-24 because increasing construction tasks.
Economic sector takes in 80pc of overall steel bar manufacturing as compared to 20pc by the public field, he added.
Hassan Bakhshi, former chairman Organization of Builders as well as Developers (ABAD), claimed a multi-storey high job to be built on 1,000 lawns story with 3 floorings for vehicle parking needs around 1,100 tonnes of steel bars.
He declared that steel bar demand has actually been on the increase as a result of 80pc construction service highrise jobs in Punjab while the Sindh Structure Control Authority (SBCA) has been creating issues in clearing brand-new tasks.
“Only 91 jobs have been gotten rid of by the SBCA in the last 2 years in Karachi as compared to 500-7,000 jobs a year some 10 years back,” he stated.
The jobs being advertised on the social, print and electronic media belong to Punjab while in Karachi, advertisement projects have actually been running for old jobs which had been authorized very late.
Pakistan Organization of Parts as well as Accessories Manufacturers Organization chairman Abdul Rehman Aizaz was of the view that auto assemblers and their suppliers eat 15,000-20,000 tonnes monthly of iron and also steel in various types which are used in making different parts by the vendors and also the assemblers.
Bike production swelled to 2.475 m units from 1.645 m units in FY12, while jeeps/cars production rose to 163,122 devices from 154,706 devices in FY12.
Trucks as well as buses manufacturing in FY21 jumped to 3,808 and also 570 systems from 2,597 as well as 568 units FY12.
Domestic devices and also electronic products have actually shown amazing growth in the last ten years. For example, manufacturing of fridges, deep fridges freezer and also air conditioners has actually swelled to 1.337 m units, 109,029 systems as well as 505,493 units from 1.062 m units, 56,313 units and 240,338 devices in FY12. Electric fans production rose to 2.498 m systems from 1.908 m units.