Steel producers reduce products’ prices

[Naveed Yaseen]

By Moonis Ahmed
KARACHI: The local steel producers have reduced prices of their products on back of declining sales besides downward trend in the international steel prices Friday.

The market sources said a decreasing trend in raw material prices and a halt in construction activities have pushed down the local steel demand, consequently Pakistan Steel Mill (PSM) and other producers were forced to bring down prices of different products to a certain level.

The sources told Daily Times, People’s Steel Mill has reduced prices of MS Plate, ranging between 12 mm to 15 mm by Rs 5,500 per tonne to Rs 41,500 per tonne. The product was previously available at Rs 47,500 per tonne.

The prices of MS plate would decline further, as at present the sales of the locally produced steel has declined very much due to easy and cheap availability of imported steel, a dealer said.

He said regulatory duty on the import of steel would help PSM to cope up with its declining sales. “PSM was reportedly had a loss of Rs 13 billion in first nine months of current fiscal year”, he added.

He said sales of the country’s largest steel producer have been badly affected due to the depleting price trend in the international market, as PSM has made contracts of raw materials at higher prices in April 2008 and its products are now more costlier than the international market.

The continuous decline in steel demand is not only irking Pakistan but also the world in general.

The skyrocketing steel prices in the country were a nightmare for lower and middle-income earners seeking to construct their houses.

http://www.dailytimes.com.pk/default.asp...2009_pg5_2