Pakistan Steel has increased the prices of all categories of billets/blooms by Rs 200 to Rs 400 per ton and iron sheets (all grades) by Rs 4000 to 6000 per ton from November 1. According to information gathered by this correspondent, the increase is exclusive of 15 percent general sales tax, which would add at least another Rs 30 to 60 in the case of billets/ blooms and Rs 600 to 900 in sheet rates.
The increase would cover grade SUP 6 & 7 -100 x 100, 75 x 75 and grade SUP 9-100 x 100 and 75 x 75.
Extra charges for special grades have also been increased. These included ASTM-A615 G-60, ASTM A-615 G-75, ASTM A-572 G-50, WR 20 and above, SAE 1018, A2AL SSA21, ASTM A-615 G-40
An Islamabad-based steel industrialist confirmed the increase in Pakistan Steel billets/ blooms to this correspondent on Wednesday. He said that the increase would be passed on to steel buyers and finally to its the end consumers.
The steel industrialist said he saw no obvious reason for the Pakistan Steel to increase rates of billets/ blooms and sheets. He opined that the government should have strong checks and balances system to avoid any unnecessary increase in items like steel, which is a key item in construction.
A Rawalpindi-based sheet dealer said that sheet rates have gone up from last week's rates of Rs 42000 per ton to Rs 48000 per ton from November 1, and such a major increase in sheet prices was adversely hitting their business.
He said that by pushing up billets/ blooms rates at a crucial juncture when housing sector was at the off take stage, Pakistan Steel had no justification for increasing its rates time and again.
The increase is a bad omen for the housing sector since it would increase cost of all the steel made items used in construction and those who are directly or indirectly related with the housing sector were critical to the increase in billets/ blooms.
Sources said the contractors' association has taken up the case with the government and demanded reversal of the recent increase in billets/blooms.
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