Steel prices in Pakistan have jumped by Rs5,000 per ton following the new taxes in the 2024-25 federal budget, raising the cost of steel rebar to as much as Rs 273,000 per ton. Local steel producers announced this price increase, which took effect on July 1, 2024.
According to JS Research, the current price range for steel rebar is between Rs 262,000 and Rs 273,000 per ton.
The government is expected to announce an increase in electricity tariffs soon, contributing to the rise in steel prices. Industry sources say producers pass on the anticipated higher electricity costs to consumers.
The rise in energy costs, a significant part of steel production expenses, has significantly impacted this price hike.
With the construction industry already facing high costs, this increase adds further pressure. Experts warn that disruptions in the raw material supply chain could worsen the situation and lead to more price hikes in the future.
