The prices of mild steel bars on Wednesday shot up by Rs 5,000 per ton to new peak of Rs 60,000 per ton in the wake of soaring prices of raw material in international markets, traders said. Pakistan steel last week announced raise in the price of billets as the price of billets in the world market soared due to huge demand.
Pakistan Steel increased billets prices by Rs 4,750 per ton to Rs 45,000 per ton (excluding sales tax) on February 15, 2008 in line with international market prices.
Following the PS decision, the re-rolling mills raised the mild steel bars (sarya) by Rs 4,000/5,000 per ton, traders said. The re-rolling mills raised the price of scrap mild steel bars by Rs 4,000 per ton to Rs 55,000-56,000 per ton. Previously these were selling at Rs 51,000-52,000 per ton.
With the rise in the price of billets, the price of mild steel has gone up by Rs 5,000 per ton to Rs 59,000-60,000 per ton. Earlier the price stood at Rs 54,000-55,000 per ton.
Traders said that billet prices in the international market range from $840 to $860 per ton. They said that with the tremendous increase in billets prices it was difficult for the re-rolling mills to sell this item--mild steel bars--at existing prices. Therefore, millers had increased the price.
It may be mentioned here that country's demand for billets is around 600,000 tons annually, of which some 200,000 tons is produced at PS, while the gap is met through imports from Russia, South Africa, Ukraine and Egypt.