Thursday, May 30, 2024

Massive Unexpected Drop in Steel price in Pakistan

A sudden plunge in steel prices in Pakistan could stem from a surplus in global steel supply, weakened demand, overproduction, or increased availability of raw materials. Economic downturns or trade dynamics may further contribute, impacting the steel industry, construction sector, and overall economic stability.

After a crackdown on illegal steel scrap melting and a decline in the dollar value, record lows in construction materials’ prices have been observed in Pakistan. Due to the Rupee’s appreciation, the price of steel has decreased by 50,000 PKR per ton, falling from 290,000 PKR to 240,000 PKR per ton, according to traders. They state that if production costs decrease, it will result in reduced prices for consumers as well, as buyers have had limited relief due to electricity and gas bills.

It’s noteworthy that last year saw an uncontrolled rise in construction material costs across the country, leading to a crisis in the construction industry. Prices of materials like bricks, cement, and steel used in construction have soared.

People associated with the construction sector point out that the daily increase in commodity prices has made budgeting for home construction challenging, and the rising costs of bricks, cement, steel, and other materials are making construction contracts unusually expensive.

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