Steel price jumps up by Rs5,000 per tonne

By
Hussain
-
18
822

Over 70 per cent of steel manufacturing units in Punjab have announced a complete shutdown for one month due to gas curtailment. The forced closure of steel industry has swelled steel products’ prices – including bars, angle and girder – by Rs4,000 to Rs5,000 per tonne. Speaking to Profit, Pakistan Steel Rerolling Mills Association Chairman Mian Tariq Waheed underscored that Punjab steel industry is traversing the most difficult times due to gas and electricity curtailment. Steel manufacturers had to close their production units to save fixed monthly electricity charges (MDI) of 325 per kilowatt as steel manufacturing was not economically viable without natural gas supply, he maintained.
During the last 30 days, he pointed out that steel prices have risen by Rs4,000 to Rs5,000 per tonne. Graded steel products are being sold at Rs71,000 to Rs72,000 per tonne, whereas local quality steel bars, angle iron and girder are available at Rs66,000 to Rs67,000 per tonne.
Waheed further indicated that steel product prices should not swell during current circumstances as no major development project was underway in the country. But domestic steel manufacturers have to increase steel prices as their cost of production had been increase due to gas curtailment, he further added.
He disclosed that due to suspension of gas supply, steel industry had to switch to coal, but black rock prices were also witnessing a jump of Rs3,000 to Rs7,000 per tonne and settled at Rs15,000 to Rs20,000 per tonne. However, even after price jump coal was not easily available in the markets. Pakistan Rerolling Mills Association former Chairman Asmat Pervaiz Malik added that steel manufacturers had to put in extra efforts in arranging huge quantities of coal. He indicated that an average sized steel furnace requires some 4-5 tonnes of black rock daily, but no vendor in the city could meet the increasing demand of steel industry.
Responding to a question, Malik said furnace oil was another alternate but its prices has gone beyond Rs80,000 per tonne, while the same commodity was being sold at Rs52,000 to Rs54,000 per tonne. He further revealed that some small furnaces were using already used tyres with coal for melting process. However, prices for used tyres are continuing to escalate and have reached Rs500 to Rs750 per 40-kg.

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