Prices of steel bars go up as rupee loses value

A reverse trend in the rupee-dollar equation has again forced manufacturers to raise prices of steel bars after a drop last month on account of the rupee’s gains. Syed Wajid Bukhari, General Secretary of the Pakistan Assoc­iation of Large Steel Producers (PALSP), claimed on Thursday that steel bar prices had plunged to Rs245,000 per tonne last month after hitting a peak of over Rs300,000 per tonne. But the trend is now changing and the rebar prices currently hover between Rs265,000 and Rs268,000 after a rising trend in domestic prices, he added, fearing that rates would go up in case the dollar continues to rise. The increase in prices of steel bars appears surprising in view of a declining trend in iron and steel scrap prices in the world market. Data released by the Pakistan Bureau of Statistics (PBS) suggests a drop in average per tonne price in iron and steel scrap to $467 during July-September FY24 from $580 in the IQFY23. The country imported 591,892 tonnes of iron and steel scrap ($277 million) versus 648,510 tonnes ($376mn) during 1QFY23. During September 2023, arrival of scrap stood at 200,189 tonnes ($92m) as compared to 208,325 tonnes ($117.6m) in September 2022, while August 2023 imports were 210,325 tonnes ($97m).