The Pakistani construction industry is facing an uphill battle as the price of steel, the key raw material for building, reaches an all-time high.
In an unsettling turn of events, domestic steel product prices increased yet again during the month of August.
The construction industry, a pillar of the country’s economic prosperity, is bearing the weight of rising raw material costs and the depreciation of the Pakistani rupee.
Steel rebar prices, a vital component in construction, have risen by up to Rs. 8,000 per tonne, with the modification taking effect on August 29, 2023.
Retail prices now vary between Rs. 282,000 and Rs. 288,000 per tonne, according to JS Research.
Construction and infrastructure sector struggles
The construction industry, as well as the infrastructure sector, have traditionally been the primary drivers of steel demand in Pakistan.
However, the current landscape is marked by a significant slowdown in infrastructure stimulus, coupled with sluggish market growth.
The prevailing market conditions paint a bleak picture as input costs continue their rapid ascent, leaving manufacturers with little choice but to transfer the financial burden to end-users.
The recent increase in rebar pricing is expected to have far-reaching implications across multiple industries in the coming weeks.
This continuous rise in steel prices raises concerns about the future of Pakistan’s construction projects and infrastructure development. Construction industry stakeholders are keeping a careful eye on the situation, hoping for a respite from the constant pressure on construction costs.