KARACHI (PR): Despite all the unfavourable circumstances, Pakistan Steel has kept the production capacity more than 20pc of the business plan committed to the government for the month of May 2013, which was supposed to be enhanced to 40pc in the month of July, but now it appears that we may have to reduce the production capacity instead of increasing, since the required funds have not been received from the government and the facility of Rs. 3 Billion LC’s release is also pending. In this regards it is important to put in the picture that if the LC for Import of Raw Materials (Iron Ore & Coal) is not released timely then the Pakistan Steel’s production may be severely affected; notwithstanding the golden opportunity for Pakistan Steel, to purchase Raw Material from the World Market.

Spokesperson for the Pakistan Steel informed that the price of raw material is on a constant downward trend and according to  Platts Magazine’s latest news the price of Iron Ore has further reduced. Now the price of the Iron Ore as of  June3, 2013, is $109.75 per ton, earlier on May 30, 2013 this price was up to CFR North China $114.75.

In the past three days the prices of raw Iron (Iron Ore) have seen a decline of nearly $5 per ton, whereas Metallurgical Coal (Coal) after further reduction is being sold at $136, whereas three days earlier Meteorological Coal’s (Coal) FOB from Australia was $137.5 per ton in which a $1.5 has been reduced.