Pakistan Steel has said that it would like to clarify that the prices of our Billets (Cast/Rolled Both) are revised keeping in mind various production factors, among those conversion cost is the basic element which is given special emphasis during price revision of billets.
The size 150 x 150 is sold as cast, which is cost effective, whereas billets in size 100 x 100 as well as 75 x 75 mm are initially cast into bloom of size 250 x 250 mm, reheated and then re-rolled to obtain desired sizes, thus additional cost is incurred on its production. It is astonishing to see that the Chairman PSRMA has raised this issue, as we understand that he must be fully aware of the additional cost incurred during pre-heating and re-rolling of bloom to produce rolled billets of requisite dimensions. It is our endeavour to serve that the local private sectors within our production capacity/capability in true spirit without compromising our own interest.
It is to be appreciated that recent modifications in selling arrangement - 2010 with effective from 03-01-2011 have been well received by the customers (consumers/traders both) who are interested in running their business affairs with Pakistan Steel, which is evident from the fact that on achieving a remarkable sales target of Rs 2.92 billion after a lapse of 17-months in December 2010, Pakistan Steel is yet marching towards reaching another milestone of touching optimum sales of more than Rs 3.50 billion in January 2011.-PR