Rise of Steel prices and its impact on construction industry in Pakistan
Raw material prices has been increased due to political instability and inflation in Pakistan which has led to concerns of construction industry and the end users. with the increase in raw mertial prices, steel prices has significantly increased making the house construction and commercial construction projects an uphill task.
following factors has impacted the rise of steel prices in Pakistan
Global inflation: price hikes of steel can be impacted from global steel market demand and supply scenario. the increase in demand of steel from the major steel-consuming contories has impacted steel prices in Pakistan.
High Prices of Material: the prices of raw material such as scrap material, irone ore, coal and other material used in steel mills has increased which has increased the overall prices of steel in Pakistan.
Supply shortage:
The governemnt policies has created problems for the supply of material which has causing increase in demand. these 2 factors combined are making the sitation event worse for the price hike of steel in Pakistan.
Devaluation of Pakistani Currency: Depreciation of the Pakistani Rupee against major currencies can increase the cost of imported raw materials and equipment, leading to higher steel prices.
High Taxes: Changes in government policies, including taxes, tariffs, and regulations, can impact the cost of production for steel mills. Any increase in taxes or duties on steel production or importation can lead to higher steel prices for consumers.
High Production Costs: Steel production involves significant energy and labor costs. Any increase in energy prices or wages can directly impact the production costs for steel mills, leading to higher prices for steel products.
Demand-Supply Imbalance: If demand for steel products exceeds supply due to increased construction activity or infrastructure projects, steel prices tend to rise as mills struggle to meet demand.
Global Economic Conditions: Economic conditions and geopolitical tensions can also influence steel prices. Uncertainty in global markets or trade disputes between countries can lead to price volatility in the steel industry.
