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Following the implementation of significant new taxes in the federal budget for 2024-25, domestic steel prices have surged by Rs5,000 per ton, raising the cost of steel rebar to as much as Rs 273,000 per ton. Local steel producers announced that this price increase took effect on July 1, 2024.
JS Research reports that the current price range for steel rebar is between Rs 262,000 and Rs 273,000 per ton.
The government is expected to announce an increase in electricity tariffs in the coming days, which has contributed to the rise in steel prices. Industry sources indicate that producers are passing on the anticipated higher electricity costs to consumers.
Also read: Govt to shut down Pakistan Steel Mills
The rise in energy costs, a significant component of steel production expenses, has been a major factor in this price adjustment.
With the construction industry already grappling with high costs, this increase is likely to add further pressure. Experts warn that disruptions in the raw material supply chain could exacerbate the situation and potentially lead to further price hikes in the future.