Daily Times reported that the local steel producers have reduced prices of their products on back of declining sales besides downward trend in the international steel prices. The market sources said that a decreasing trend in raw material prices and a halt in construction activities have pushed down the local steel demand, consequently Pakistan Steel Mill and other producers were forced to bring down prices of different products to a certain level.
The sources said that People’s Steel Mill has reduced prices of MS Plate, ranging between 12 mm to 15 mm by PKR 5,500 per tonne to PKR 41,500 per tonne. The product was previously available at PKR 47,500 per tonne. A dealer said that the prices of MS plate would decline further, as at present the sales of the locally produced steel has declined very much due to easy and cheap availability of imported steel. He said that regulatory duty on the import of steel would help PSM to cope up with its declining sales. PSM was reportedly had a loss of PKR 13 billion in first 9 months of current fiscal year.
Dealer said that sales of the country’s largest steel producer have been badly affected due to the depleting price trend in the international market, as PSM has made contracts of raw materials at higher prices in April 2008 and its products are now more costlier than the international market.
The continuous decline in steel demand is not only irking Pakistan but also the world in general. The skyrocketing steel prices in the country were a nightmare for lower and middle-income earners seeking to construct their houses.