NEWS
Electricity  

Pakistan Govt Likely to Increase Electricity Tariff - Sources

As per industry sources report to SteelMint, Pakistan’s Government has indicated a hike in electricity tariffs by upto around 25% over the next few months period.

Power tariffs are expected to be brought from the existing average of PKR 12.98 per unit to PKR 16.24 per unit during next four months with the objective of bringing power-sector losses to zero from 1st of July’19 onwards. Participants indicate that this increase would be significant however, the exact date of its implementation is yet to be cleared at the moment.

“There is news of rising in electricity tariffs by average around PKR 1.5 per unit and this rise could extend for every month for next 3-4 months. Maybe by next week, it will come in action, however, there is uncertainty regarding its impact at the moment” shared officials from local steel mills.

What could be the expected impacts?

Local steel prices may increase - Increased electricity tariffs may result in increasing of local steel prices in Pakistan. However, recent World Bank’s report says that increasing electricity tariffs will not help solve the issues in the power sector in Pakistan. As per last reports, Bala billet prices assessed at PKR 74,300/MT and rebar selling price at around PKR 95,000-96,000/MT, ex-works in Punjab and Lahore inclusive of local taxes.

Public sector development projects execution turns skeptical - Many steelmakers are already getting affected by issues like holding up of several public sector development projects by the Government in Northern region and a lot of tax evasion being faced by the industry. Additionally, in the upcoming heating season, electricity consumers should be expecting another massive hike in the bills they pay for their power usage while by peak summer it will affect the economy further badly. This may put a question on the government’s stated plans of increasing economic investment in Pakistan.

Historically, Mar-Apr has been a very good period for the steel industry but it might not be as good as past years this time, shared an official from a renowned mill in Pakistan. Participants of a few other mills that SteelMint spoke shared that there is uncertainty at the moment and we are waiting for clarifications.

News No: 4067
Date: 2019/03/18 - 15:30
News Source: SteelMint

Pakistan  Electricity  Local steel prices  SteelMint 

Comments:

Leave a Comment:

   
   
   
 

India: SAIL Reduces Pig Iron Offers for August Deliveries

Steel Authority of India Ltd (SAIL) has reduced basic grade (steel grade) pig iron offers by around INR 700/MT (USD 10) from its Bhilai Steel Plant (BSP) based in Central India, SteelMint learned from market sources.
 

Indian Iron Ore Exports Up 19% in July’19

Indian iron ore export volumes for July’19 stood at 2.13 MnT, up 19% as against 1.79 MnT in June’19. On yearly basis, exports increased significantly compared to July’18 at 0.17 MnT.
 

India: Rebar Prices in Secondary Market Hovering at 2-Years Low

Indian rebar prices of medium and small scale mills hit nearly 2 years low amid constant downfall over dull demand amid heavy monsoon season which has put construction activities on hold. As per SteelMint's assessment the prices slumped by INR 500-1,500/MT (USD 7-21) W-o-W.
 

Iran Billet Export Offers Soften on Limited Trades

After observing deals in past few weeks, this week left the Iranian billet market sentiments softened. SteelMint’s current Iran’s billet export assessment stands at USD 385-390/MT, FoB, down by USD 5/MT against last week’s assessment of USD 390-395/MT, FoB.
 

Tata Steel Q1FY20 Results - Key Takeaways

India’s steel giant - Tata Steel announced Q1 FY20 results yesterday. SteelMint attended the analyst/investor conference call and the highlights are mentioned below.
 

The largest wind power plant in Africa has opened in Kenya

Kenya has unveiled Africa’s largest wind power plant, a project aimed at reducing electricity costs and dependence on fossil fuels and moving the nation to meet its ambitious goal of 100% green energy next year.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners