KARACHI: The prices of steel products are likely to go up in the local market as a result of increase in withholding tax to 4 percent from 2 percent on commercial imports, industry sources told Daily Times. “Because of the increase in WHT at import stage the prices are likely to increase by some Rs 1,000 to Rs 1,500 per metric tonne on GI, HR and CR, by July 1, 2009”, they added. Market sources said Peoples Steel Mills has also increased its rates for MS Plates and the plate ranging between 10mm to 12mm available at Rs 41,500 was now available at Rs 43,000. Similarly, the prices of plate ranging between 13mm to 50mm have been increased to Rs 54,900 as compared to Rs 49,500 previously. Peoples Steel Mills (PSM) is the only facility of its kind in Pakistan engaged in the development of alloys and special steels. The prices of galvanized steel, hot roll coils and cold roll coils steel products mainly on the weak demand and revision in import trade price (ITP) by customs had been slashed by almost Rs 1,500-2,000 some 45 days before. The steel products including GI, HR and CR coils are currently being sold at rate of Rs 76,000, Rs 52,000 and Rs 63,500 per metric tonne respectively. Sources said ITP for three months July-September would be increase that could also cause to increase the prices. This further increase in the steel prices will ultimately increase the cost of doing business that is already much higher in the local market, dealers said. International steel prices have also witnessed an increase as the price of hot rolled coils have gone to $420-430 as compared to $380 previously. An official of the Pakistan Re-rolling Mills Association said buyers were waiting for the steel prices to settle down, but now due to increase in WHT and contracting demand the sales of steel has plunged and the re-rolling mills were compelled to slowed down their operations. The major decline in construction activities has also lowered the demand of mild bars and sales of mild bars are badly affected, he added. In Pakistan, 350 re-rolling mills are operational out of which 52 are in Karachi. Around four million tonnes of steel is produced in the country and Karachi contributes 30 percent of the total quantity.