Steel prices surge to record high in Pakistan, posing a major challenge for construction sector

The construction industry in Pakistan is currently grappling with a formidable challenge as the price of steel, its primary raw material, reaches an unprecedented high. On Monday, leading steel rebars producers announced a substantial increase of Rs5,000 per metric ton, attributing it to a scarcity of raw materials and a significant surge in the basic power tariff.

According to Samaa, this decision to raise steel prices has sparked concern throughout the construction sector, as the cost of steel now stands at a staggering Rs260,000 per metric ton. Such a sharp escalation in costs has understandably raised eyebrows and placed industry players under mounting pressure to navigate these burgeoning challenges.

Adding to the predicament is the recent increase in electricity tariffs, further exacerbating the situation and intensifying the strain on steel manufacturers as they grapple with soaring production costs.

As a result, the construction industry finds itself confronting a multifaceted burden due to the surge in steel prices, impacting various aspects of their operations.