KARACHI: Steel bar makers on Thursday provided the initial post-budget shock to consumers by increasing costs by Rs5,000 per tonne to Rs150,500-151,500 per tonne mentioning unforeseen surge in worldwide scrap rates.
Prior to the Budget plan 2021-22, manufacturers had boosted the costs by Rs3,000 to Rs146,500 per tonne. Steel bar makers had informed the building and construction market that rising steel scrap prices in globe market had actually impacted their expense of manufacturing.
Keeping in view steel bar cost of Rs110,000-113,000 per tonne dominating in November 2020, the complete rate jump to date is Rs38,000-40,000 per tonne.
However, the ordinary per tonne import rate of iron as well as steel scrap has gone down to $386 per tonne in 11MFY21 from $389 per tonne in the exact same period in FY20.
Read Also :India rice flooding hurts Pakistani exports
According to the figures of Pakistan Bureau of Statistics (PSB), total iron and also steel scrap imports in 11MFY21 rose 4.429 m tonnes, valuing $1.7 bn versus 3.6 m tonnes at a price of $1.4 bn in the same period in FY20.
Former chairman Association of Builders as well as Developers of Pakistan (ABAD) Hassan Bakhshi feared that the Prime Minister Imran Khan’s desire for offering low-cost real estate to the masses under the Naya Pakistan Housing Plan is unlikely to happen in view of consistent as well as uncontrolled rise in rates of steel bars and cement. He advised the federal government to permit import of steel bars at reduced duties as well as tax obligations to damage the cartel of steel bar producers.
Mr Bakshi claimed the expense of building on a skyscraper job has enhanced by 10-15 per cent keeping in view a jump of 50pc in steel bar rates in the last one-and-a-half years when steel bar rate was Rs100,000 per tonne. Steel bars hold 40-45pc share in total building expense of a high-rise job.