The domestic prices of steel products have crossed the Rs. 253,000 per ton mark due to a sudden surge in the cost of raw materials in the international market.
Domestic steel producers — International Steels Limited (ISL) and Aisha Steel Mills Limited (ASL) — announced an increase in the prices of Cold Rolled Coil (CRC) and Hot Dipped Galvanized Coil (HDGC) by Rs. 3,000 per ton on Thursday, according to Topline Securities. Effective from 28 July 2022, the new price for CRC is Rs. 242,500 per ton and Rs. 253,800 per ton for HDGC.
The construction industry is currently struggling with pricing its housing units due to massive hikes in project completion costs, with steel prices increasing by 96 percent between January 2021 and June 2022 and cement prices rising by more than 72 percent during the same period, raising the overall expenditure by at least 40 percent.
The current market situation is quite alarming for the local steel industry, where the cost of inputs is already increasing rapidly, leaving the manufacturers with no choice but to pass the impact on to the end-user.