Steel rates seen falling on cut in import trade price

KARACHI: Imported steel prices are likely to go down by Rs2,500 to Rs4,000 per tons after the Custom authorities have agreed to reduce the import trade price, steel merchants’ representative said.

The Directorate General of Customs Valuation, last week, had unilaterally raised the import trade price commonly known as ITP by substantial margin. However, after a marathon between the customs officials and members of Steel Merchant Association it was decided to cut the ITP by 18 to 24 percent on different qualities of steel. It was decided to reduce the ITP on hot rolled coils by 19.3 percent to $505 per ton from earlier slab of $626 per ton. While ITP on cold rolled coils and galvanized steel was cut by 20.5 percent to $542 per ton and 24 percent to $590 per ton respectively.

The cut in prices would help reduced the imported steel prices by Rs2,500 to Rs4,000 a ton said Shamoon Baqar Ali, president Steel Merchant Association. During the meeting, the steel importers informed the Director General Valuation that the new ITP for three steel products is much higher than the world steel prices and not workable for local importers.

Karachi Iron and Steel Merchants Association (Kisma) representatives and importers also informed that the new valuation has been issued without consultation with stakeholders and they had not been taken into confidence before fixing the new ITP.

Later, on importers’ request the DG under section 81 allowed the release of imported hot rolled, cold rolled and galvanised steel products on the previous values. However, as per rules importers have to deposit post-dated cheques of the remaining amount of taxes to adjust in case of any reduction or increase in the ITP.