Steel iron bar prices see significant drop

ISLAMABAD: The prices of steel iron bars, a key input for the construction sector, have fallen sharply in the local market due to a slowdown in demand and an oversupply of the commodity.

According to market sources, the price per ton of steel bars plunged by up to Rs10,000, decreasing prices to Rs245,000 per ton. The prices of branded steel also fell by Rs10,000 to Rs260,000 per ton.

The decline in steel prices is attributed to several factors, including the reduction in the Public Sector Development Programme spending by the government, the increase in the production capacity of the local steel industry, and the import of cheaper steel products from China and other countries.

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The local steel industry is facing challenges such as high energy costs, taxation issues, regulatory hurdles, and unfair competition from the informal sector.

The steel manufacturers have urged the government to provide relief measures to the industry, such as lowering the electricity and gas tariffs, rationalizing the taxes and duties, enforcing quality standards, and curbing the smuggling and under-invoicing of steel products.

They have also requested the government to increase the allocation for the PSDP and the low-cost housing schemes, which would boost the demand for steel and create employment opportunities in the country.