The Pakistan Steel Re-Rolling Mills Association (PSRMA) Karachi circle, has taken serious notice of the critical shortage of quality raw material in the country, resulting in the price rise of steel bars and sections.
It apprehended that soon the prices of quality steel will exceed Rs 45,000 per ton with possibility of closure of a large number of mills, throwing thousands of workers out of employment.
The Association said that it felt its national duty to apprise the public and government authorities through national press of the present and future acute shortages and apprehended exorbitant prices of quality steel products, for which the industry is not and would not be responsible. To put the record straight, it has brought the following undeniable facts to the notice of all concerned.
Prior to federal budget, meetings, attended by stakeholders of steel sector, were held at Engineering Development Boar, in which the problems of availability of quality steel raw material, and stabilisation of prices of quality steel re-rolled products were discussed.
In the said pre-budget meetings it was decided that to reduce the burden of taxes at import stage the transactional value of all types of steel raw materials were lowered. It was also decided that a committee would be formed at the earliest so that with the passage of time and any adverse developments in international market, if need arose, prompt meetings would be held to consider the situation and recommend corrective steps for implementation by relevant authorities. No such committee has been formed so far.
The situation started taking an adverse turn from September 2006 and, acting promptly, this Association requested the Engineering Development Board to hold meetings of all stakeholders of steel sector to take cognisance of the situation.
Since September 2006, this Association from time to time continued to draw the attention of authorities to the worsening situation and apprehensions thereof.
The Pakistan Steel Mill is able to meet only 8 to 10 percent of the rising demand in the country while Imports are at present unfeasible due to heavy burden of taxes at import stage and rising prices in international markets.
If proper steps, in consultation with all stakeholders of steel sector, are not taken promptly, the situation is likely to become more and more critical, and the consumer and governmental projects will suffer badly.-PR