KARACHI: The current economic crisis, coupled with restrictions on import of steel raw material, has pushed steel rebar prices to significantly higher levels, creating friction between builders and producers of the metal. Expressing concern over the fate of construction industry, the Association of Builders and Developers of Pakistan (ABAD) in a statement lamented that a surge in steel bar prices forced the construction sector to shut their business. \u201cWe will continue protesting against cartelisation and suspend the purchase of steel at arbitrary prices,\u201d the statement quoted ABAD Senior Vice Chairman Khawar Munir as saying.
\nHe urged association members to continue to stay away from steel purchase until the manufacturers brought prices back to normal levels. Earlier on February 9, ABAD chairman had announced a boycott of steel manufacturers.
\nSteel prices have gone up over different reasons, which are both internal and external.
\n\u201cSteel rebar prices soared due to supply shocks, led by import restrictions,\u201d Optimus Research steel analyst Mehroz Khan remarked, according to The Tribune Express.
\nManufacturers raised prices also because of scarcity of locally produced scrap.
\n\u201cThe only solution to this situation is easing restrictions on scrap import,\u201d he suggested. \u201cThe prevailing demand and supply gap will continue to widen if appropriate measures are not taken.\u201d
\nWith the announcement of mini-budget, steel manufacturers hiked prices to Rs350,000 per ton while the price of a sack of cement exceeded Rs1,000, adding to the miseries of construction industry, which was already suffering due to cost overruns, said Munir. \u201cAs a result, the cost of construction projects has increased manifold.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI: The current economic crisis, coupled with restrictions on import of steel raw material, has pushed steel rebar prices to significantly higher levels, creating friction between builders and producers of the metal. Expressing concern over the fate of construction industry, the Association of Builders and Developers of Pakistan (ABAD) in a statement lamented that a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-316132","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-national"},"yoast_head":"\n