Pakistan, October 4, 2024: In a major relief for Pakistan’s construction sector, steel prices have crashed by PKR 8,000 per ton. Much-needed relief for builders and contractors, the price fall has been heartily welcomed and may send positive vibes for economic activity in the real estate and infrastructure sectors.
Previously, the steel prices had been increasing mainly due to international inflation, chain collapse of supplies, and demand exceeding supply. Now, the decrease in the price has been seen on operation for months after negotiations between local steelmakers and the government-the threat of bringing this market to a stable condition thereby giving relief to the construction industry. Major steelmakers, such as Mughal Steel and Amreli Steels, have imposed the new rates. Other players across the country are expected to act likewise.
This drop is expected to lower the cost of housing and commercial undertakings, which would encourage more of it. Contractors and developers across Pakistan felt hopeful, saying that the fallen prices of steel could also bring down overall construction costs.
Industry observers opine that with this trend, the construction sector of Pakistan would witness high growth momentum, which may positively impact the peripheral industries like cement, bricks, and electric supplies.
The new price of steel seems to stabilize further in the coming months depending on how the global market and local production would trend. In this case, what the pricing cut does now is help alleviate much-needed financial relief, which may be enough to get stalled projects back up and running nationwide.
Stay tuned for further updates on this price change and its impact on the economy!
