Despite being affected by the global economic recession and incurring losses, the Pakistan Steel Mills will regain its lost sales and reach a respectable mark of sales by July 2009, Chairman, PSM, Mueen Aftab Sheikh said while addressing a press conference at Pakistan Steel Mills Saturday.
The steel mill recorded sales of Rs 1.5 billion in November 2008, Rs 2.8 billion in December 2008 and Rs 3.8 billion in January 2009.
Mr Aftab said: “we are making efforts to incorporate clause in PPRA rules authorising any government department committee to negotiate with suppliers to adjust the contracted prices equivalent to difference of current international prices of raw material and other consumables.
"We have initiated a project for making briquettes of coke dust 0-15 mm, as in the past around 40,000 tonnes of coke dust was wasted every year, but the coke briquette made from this dust would be worth $20 million per annum.”
PSM has also started using local Sharrigh coking coal to the tune of 5 percent in the plant. The price difference between local and imported coal is $275 per MT. To cut down the surplus contents PSM is also procuring a desulfurization plant to use more local coal as substitute of expensive imported coal, chairman informed.
The PSM management has also approached FBR for the imposition of a regulatory and antidumping duty because EU has imposed 85 percent duty on import of steel products from China. USA has imposed 153 percent dumping duty on Indian steel products and India has imposed 30 percent duty on import of steel products. Due to the global recession, the PSM is operating at 75 percent capacity instead of 90 percent.
The market share of PSM prior to the recession was 20 to 45 percent for long and flat steel products and the rest of demand was being met through imports in case of flat products, whereas long products were being produced locally through re-meltable scrap or ship breaking, he said.
Source: Daily Times, Lahore
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