In August, local steel prices saw a second increase. The surge in the price of raw materials and inflation rates are to blame for the most recent price hike. The information, made public on August 16th, clarifies the economic drivers of this growing tendency.
Due to the new price structure, the domestic steel rebar category has experienced an increase of PKR 10,000 per ton. Due to this spike, the typical retail price range for steel rebar now ranges between PKR 270,000 and PKR 280,000 per ton. The prior price range has changed, where steel rebar was priced at PKR 260,000 to PKR 267,500 per ton.
The building industry has been severely affected and is currently in chaos due to these ongoing steel prices rise. Construction sector stakeholders are struggling financially due to the rising cost of a necessary building component. Industry insiders and observers attribute this negative scenario to two distinct, interrelated factors. A considerable increase in the basic power cost and shortages in the supply of raw materials.
In conclusion, the Lahore steel market’s economic environment has changed due to the price increases it has experienced due to outside forces such as a shortage of raw materials and general inflationary pressures. The construction sector continues to face difficulties as it navigates the effects of these events and stakeholders adjust to these new price levels.