The local steel industry has increased prices due to the high cost of imported scrap, energy tariff, devaluation of local currency, and a jump in the policy rate. According to Fortune Securities, long steel manufacturers, Amreli Steels (ASTL) and Agha Steels (AGHA), have increased their prices for rebars and girders by around Rs2,000/tonne on Tuesday. According to Fortune Securities, this takes rebar prices to Rs195,500 -Rs197,500 per tonne. It also said that Mughal Steel has also increased their prices for rebars and girders by around Rs2,000 per tonne. Large steel producers claim that keeping the multiple reasons in view, the local steel industry has been left with no option but to further increase the price of steel, a necessity in the construction industry. An unprecedented increase in the cost of steel scraps globally as well as record freight charges, coupled with a massive devaluation of the local currency against the dollar, drastically increasing price of gas, electricity, and fuel has made price increases in the domestic market completely unavoidable. Earlier, in a letter recently written by the Pakistan Association of Large Steel Producers (PALSP), concerned ministries were informed about the expected jump in prices for various reasons. According to the industry, after facing a deep crisis for two years, the fragile steel industry is looking to rebound but cannot achieve any real growth due to supply chain disruptions and local government inflationary pressures. In terms of real production, the steel industry has shockingly consolidated and contracted by a record 30 percent, which has not been seen in the country’s history, the letter states. The continuous devaluation of currency, a whopping 5pc in the last 30 days alone, adds to landed import cost of all imported raw materials which directly leads to imported inflationary pressures domestically. The steel industry believes that the devaluation would result in an increase of over Rs9,000 per tonne in their input costs. Another major factor which may contribute to further rise in prices is the high energy tariff as National Electric Power Regulatory Authority (NEPRA) on November 30, has further firmed up charging an additional Rs4.74 per unit fuel cost to consumers for electricity consumed in October. The decision, the industry fears, would directly burden consumers by at least another Rs4,000 per tonne. According to the steel sector, in the wake of continuous upward commodity boom of scrap metals in the international market, scrap prices remain on a bullish trend owing to a pickup in demand after economies began to operate in full swing and governments push to stimulate their respective construction industries across the globe, such as United States Build Back Better programme valued at a record $1.75 trillion, are driving up prices of scrap steel in global market.