ISLAMABAD: The documented steel sector has announced that the drastic increase in power tariff by 25 percent coupled with further devaluation of Pak rupee would result in an immediate increase in price of steel rebars by at least Rs 15,000 to Rs 18,000 per ton.

In a statement issued here on Sunday, Pakistan Association of Large Steel Producers stated that steel industry is heavily reliant on power as its raw material therefore the manufacturing cost is to go up forthwith. This increase is to be passed on to consumers from the date of levy.

The struggling steel industry does not have the capacity to absorb this massive increase in the cost of major input itself. Power is the second major input in steel making after raw material/ scrap.

The effect of most recent US$- Pak rupee parity change has made raw material import expensive by Rs.7000/- per ton and still parity is not stable.

Pak rupee is fast depreciating and making imports more and more expensive, it added.

Copyright Business Recorder, 2023