Lately, the cost of construction has only increased in Pakistan. Among others, the rising price of steel alone has made the cost of construction go beyond many.
The good news however is that steel prices have come down to less than Rs.250,000 per ton. A reduction of Rs.12K per ton, this has been made possible by declining raw material prices in the international market, among other reasons.
How Big of a News Is It?
Big enough to give a big nudge to the sluggish construction industry.
It goes without saying that steel is an essential commodity in any construction project. With its prices coming down, many stalled projects would get a new lease of life; it is hoped new construction projects will also start, employing millions across the country.
Reasons Behind Declining Steel Prices
Pakistan imports scrap, the main ingredient in making steel locally. As its price has begun to go down in the international market, thanks to a weakening Dollar and declining scrap import (demand) in the country, the cost of manufacturing steel has also gone down.
In late 2020, scrap prices had started to go up in the international market due to renewed economic activity across the world as Covid 19 related lockdowns ended. In addition, freight cost also went up, making import of scrap even more expensive.
Steel products like garders and TRs are available on OLX Pakistan.
What do you make of this news? Are you in the construction industry? We are interested in hearing your thoughts.