LAHORE - The abnormal increase in electricity rates by Rs5.4 per unit has increased cost of steel billets by almost Rs5,000 per ton. Since ship breaking industry does not use any electricity, the difference in the cost of ship-plates and steel billets has further increased by Rs.5000 per ton.
This was stated by Pakistan Steel Manufacturer’s Association, who demanded level-playing field for steel melters so that investment made in Steel Melting Furnaces, running into hundreds of billions of rupees could be secured.
In its letter to Finance Minister, Ishaq Dar, PSMA has pleaded that currently the difference in cost of ship-plates supplied by ship breaking activity and steel billets supplied by steel melters is Rs.12,000 to Rs15,000 per ton which is making steel melters absolutely uncompetitive.
PSMA demanded govt to mop up the surpluses by imposing federal excise duty on ship-plates and ship items with immediate effect at the rate of at least Rs. 10,000 per ton in order to give a level playing field and equal competition to steel melters.