Pakistan Steel Mills on Wednesday announced another raise - third in a row in a month - in the price of some six steel products by upto Rs 2,500 per tonne. Pakistan Steel has raised the prices of billets, cold rolled, hot rolled, copal plate, slab and galvanised and the new rates have been formally issued to dealers for implementation.
DEALERS SAY THAT AFTER THE CURRENT UPSURGE, THE PRICES OF STEEL PRODUCTS HAVE REACHED A NEW PEAK LEVEL IN THE LOCAL MARKET: Although PSM chairman Major General Muhammad Jawed had announced two days ago that prices would not be raised till March 2008, the PSM has done it for a third time in succession.
The local engineering industry is facing great hardships due to rising prices of steel input and their cost of production has also increased significantly.
"The prices of steel products are frequently increasing in the international market, therefore the PS has no choice but to increase its products' prices," sources said.
However, the local engineering industry would be hurt with this upsurge as the local market is compelled to procure the PS pig iron and other raw material due to the easy and cheapest availability, dealers said. Dealers said that after the current upsurge, the prices of steel products have reached new peak level in the local market.
This is the third increase in the PS product prices during the January 2008 and seventh increase during current fiscal year 2008 and after the budget 2007-08 announcement it is fifth increased, they said.
The PS has raised billet prices by Rs 1,000 per tonne on all type of grade and after the current raise, the price of billets 150X150 mm and billets 125X125 mm had reached new peak of Rs 37,250 per tonne as compared to Rs 36,250 per tonne previously (excluding 15 percent sales tax), said the dealers.
In addition, the prices of billets 90X90/ 100X100/ 105X105 mm had touched Rs 37,750-mark per tonne, MS billets 80X80/ 75X75 mm at Rs 38,100 per tonne, billets 65X65 mm at Rs 38,950 per tonne and 50X50 mm would be available at Rs 39,450 per tonne (excluding sales tax). The prices of hot rolled coiled has been gone up by Rs 1,000-1,500 per tonne, while cold rolled coils have raised by Rs 750-1,000 per tonne.
The price of two hot rolled products upto 2 mm to 3.25mm have gone up by Rs 1, 500 per tonne to Rs 41,000 per tonne, Rs 40,550 per tonne and Rs 40,050 per tonne respectively (excluding sales tax). While the price of over 3.25mm upto 5.56mm have been gone up by Rs 1,000 per tonne to Rs 39,300 per tonne (excluding sales tax).
Similarly, the prices of 0.90 to 1.20 mm cold rolled coils has been increased by Rs 1,000 per tonne, while over 1.20 to over 1.6 mm cold rolled coils price gone up by Rs 750 per tonne. After the following upsurge the maximum price of cold rolled coils has reached Rs 48,300 per tonne (excluding sales tax).
The PS has raised prices of galvanised products by Rs 500-2,500 per tonne on all grades and the maximum prices of galvanised coil (prime) have reached at Rs 48,500-58,100 per tonne in the domestic market (excluding sales tax).
In addition PS has an announced to raise the prices of Thick plate by Rs 500-1,000 per tonne on different grades. Thick plate maximum price has reached Rs 37,000 per tonne (excluding sales tax).
The PS has raised price of Ms slab by Rs 500 per tonne to RS 33,500 per tonne (excluding sales tax) and implementation on the new price list has started from Wednesday. They said that in the PS has issued price list excluding 15 percent sales tax and after the imposition of sales tax the prices would further shows an approximately upsurge Rs 2,000 per tonne.