The Daily times reported that Pakistan Customs has reduced the Import Trade Price sharply by up to 27% on various steel products following the prices in the international commodities market.
As per report, the changes in ITP levels are as under
1. HR - Down by USD 114 per tonne, USD 325 per tonne
2. CR - Down by USD 104 per tonne, USD 345 per tonne
3. HDG - Down by USD 158 per tonne, USD 425 per tonne
However, traders were of the view that steel prices in the international markets registered significant decline but the country’s import trade prices ae still on the higher side.
Mr Shamoon Bakir Ali president of Karachi Iron and Steel Merchants Association said the cut in ITP prices on steel products will not benefit the buyers of the products expectedly as it imported steel products prices has now became at par with locally prepared steel products.
Mr Bakir is optimistic that the decline in ITP would encourage importers to purchase from international markets and contributed towards mega development projects aimed by the government in the next Public Sector Development Program.
He also hoped that the government will consider further relief to steel traders in order to boost the construction industry by advocating private and public sector development projects in the next budget.
The higher ITP prices on local steel products have declined its imports and sales as well in the domestic market. According to Federal Bureau of Statistics, the import of iron and steel went down by 13.17% to 1.54 million tonnes during the first 10 month of the current fiscal year as compared with 1.77 million tonnes over the corresponding period of last fiscal year.
Dealers said the local producers normally cater 15% to 20% of the total demand and remaining requirement meet through imports. However, the slow in demand of steel products have declined both sales significantly.