Business Recorder reports:
Despite the robust growth in steel product sales during the current fiscal year, he PS profit will not go higher than the last fiscal year, while level of steel production will also come down to 85 to 89 percent, he added.
He said that raise in prices of steel products by PS is not affecting masses, as two PS products, including galvanised steel and pig iron are still being sold under cost with a view to benefiting the common man.
"The main reason behind this price-hike was to curb the black marketing by steel dealers and traders and reduce the cost of production, besides rationalising steel prices in line with the international market", said Muhammad Javed.
Pig iron and galvanized steel are the two major products of Pakistan Steel. Currently, it is selling pig iron at Rs.1200 per tonne and galvanized steel at Rs.500 per tonne. The Chairman said that in order to refrain the dealers and traders from manipulating the market, PS will further raise their product price. Although there is a huge opportunity for the company to export its steel products to other countries, it is currently focusing on meeting the growing demands of steel in the local market. Last fiscal year, the company made a profit of Rs.3.1 billion and paid Rs.1.6 billion tax and Rs. 1 billion as dividend.
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