KARACHI, Nov 24: The price of steel bars (sarya) plunged to Rs55,000-56,000 from Rs61,000-62,000 per tons two weeks back following cut in prices of billets by Pakistan Steel.

The cut in steel bar prices may provide some relief to the people as the cost of construction, which surged substantially, may come down to some extent.

However, the importers and dealers of steel products feel that the prices of steel products could further come down if the Customs resolves the clearance problem.

President Karachi Iron and Steel Merchants Association (KISMA) Shamoon Bakar Ali said that the prices of steel items had fallen sharply in world markets. For example, he said billet price has declined to $350 per ton from $700 per ton few months back. Similarly, the price of galvanised items has plunged to $600 from $1,000-1,200 per ton.

He said the Customs was currently assessing the freshly imported steel items and raw materials at four months’ old valuation advices when the prices in world markets were at its peak level. Shamoon said that the prices of steel items currently arriving are at least 30-50 per cent lower as compared to four months back.

He urged the Customs to charge duty on the transactional value or declared value until the international prices come down sharply. He added that there are huge quantities of steel items lying at the bonded warehouses for the last two to four months, which were imported at higher prices.

He said that the Customs should charge duty on bonded warehouses items as per new value, which the department can do under section 19 of the Customs Act.

He said a representation in this regard has already been made by the KISMA along with the Karachi Chamber of Commerce and Industry (KCCI) to the Member Customs. The Customs officials have assured the importers that he would look into the matter.

By accepting the demand, the price of steel products would decline further by at least Rs8,000-10,000 per ton.

He said that the reduction in price steel bar would encourage construction activities and will provide relief to the people. The price cut in steel bars would also offset the impact of surging cement prices, he added.