Iron and steel prices are on the rise Cheap imports make it difficult for local companies to compete with cheap imports. However, there are multiple reasons why it’s happening, and none of them are good news for Pakistan’s steel industry. Here’s an explanation of what’s going on in the iron and steel markets today.
What is causing the skyrocketing rise in steel?
There are many factors contributing to skyrocketing metal prices, including new tariffs on Chinese goods, rising wages in China. The worldwide demand for steel (much of it from America), and an increase in oil prices (metal manufacturing is a major consumer of fuel). and the increasing strength of the dollar against other currencies. Raw material costs make up as much as 50% of the finished product cost. Rising raw material costs will lead to higher-cost steel products.
How will this affect you and your business?
Steel is an important industrial commodity. It is widely used in buildings, machinery, appliances, cars, trucks, and many other items we use every day. Steel pipes deliver oil and natural gas to homes around Pakistan. Also, fences keep people out of our backyards, while steel bars protect us from intruders at work or home. Steel is everywhere! In fact, steel has been called the world’s most useful metal because it can be melted down and reshaped over and over again. Steel has been a part of life for thousands of years. The first steel was made more than 2,000 years ago by heating iron ore with charcoal in a pit furnace.
Is it a sign of things to come?
At first glance, a sudden increase in steel prices sounds like bad news for everyone. But it’s actually good news for some. In fact, rising steel prices could be an opportunity for many businesses. Steel is a vital material for every industry—from construction to transportation to energy—and more expensive steel means greater demand. For example, if construction increases by 10 percent as steel becomes more expensive, there’s likely to be higher demand for steel pipes or rebars. Businesses that make steel pipes or steel bars will see increased revenue as well. So, while rising steel prices may seem scary at first, they can actually be very good news for certain industries.
Should we stop using steel altogether?
Not yet, but it may be time to start thinking about using less steel. The trends indicate we’re on a path to increased usage of steel, meaning that costs could continue to rise. We should be thinking now about ways to reduce our demand for steel. Such as a shift from steel rebars to concrete reinforcement bars for infrastructure projects—to mitigate these risks.
پاکستان میں آج سریا کے ریٹس جا ننے کیلیے ہم سے رابطہ کریں – شکرِیہ