Daily Times reported that prices of domestic mild steel bars fell by PKR 3,000 per tonne in a week due to decrease in raw material prices.
Steel dealers said prices of average quality MS bars have shed from PKR 71,000 per tonne to PKR 68,000 per tonne. The billet made MS bars prices have also decreased by PKR 2,000 per tonne to PKR 70,000 per tonne.
Mr Shamoon Bakir Ali president Karachi Iron and Steel Merchant Association citing reasons of recent price decline said that prices of ship plates in the domestic and international markets have decreased notably and that is why the MS bars is loosing its price stability on consistent basis.
He said that the local ship breaking industry which was being operated at minimum capacity, is now receiving more vessels and the increased availability of raw material has brought the prices down.
However, market sources said that the Amreli Steels, having 50% market share in making steel bars has also reduced the prices of steel bars up to PKR 3000.
They said that the price increase in mild steel bar, which touched a peak level of PKR 72,000 per tonne, had badly hurt the construction industry. After the current decline it is expected that the sale of mild steel bar would pick up in upcoming weeks. If the prices of raw materiel went further down, the prices of mild steel would automatically fall.