Inflation: Steel prices to increase on electricity price hike

The cost of a billet will increase by Rs4,320, says PSMA spokesperson.

KARACHI:

Pakistan Steel Manufacturers Association (PSMA), a lobbying group of steel makers, Wednesday said that they will pass on the recent increase in electricity prices as it would increase steel prices by Rs5,000 a ton, a PSMA press release said.  

PSMA said that the weighted average unit tariff increase for peak and off peak is Rs5.4 per unit. The off peak hours are 20 hours per day, whereas peak hours are 4 hours per day.

PSMA spokesman said that the cost of a billet would increase by Rs4,320, while the cost of Rebars and Wire Rods are to be increased by at least Rs5,022 per ton.

This is just the direct cost of the rerolled product that does not account for value of falling dollar by over 4% in the last few months, he said.

Published in The Express Tribune, August 8^th, 2013.

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