The prices of galvanised coils have increased sharply as its demand has been increased in the northern region of Pakistan where the rehabilitation work is continuing on war-footing by Pakistan Army besides other relief, aid agencies.
"Three weeks before, the relief workers refused to accept tents terming it 'inadequate' to cope with the harsh winter and demanded galvanised sheets for making small houses," said another trader.
The prices of different steel products have declined sharply to around 15 percent in just a week, however, the galvanised coil prices touched its peak following the demand of relief works.
Market players say that the prices of galvanised coils soared to Rs8000 in three months.
"Every year, our businesses (galvanised sheets) remain dormant but these days due to snow falling that starts from mid November and ends till the end of February, we are having brisk business," said Shamoon Bakir Ali, senior vice president, Karachi Iron Steel Merchants' Association (KISMA).
He said due to snow falling, the roads of Northern Areas are blocked during this period every year and the steel consignment could make it to Azad Kashmir hardly.
"But this time several orders have been confirmed for the galvanised sheets for that region," he added.
Commenting on the production of Pakistan Steel Mills, Shamoon said, "The production stands at 1 million tons per annum, however, the country's steel consumption is recorded at 4.5 million tons every year."
Calculating the rising demand in the country that would probably continue for another 8 months, he anticipated that during 2006, the country's steel consumption would soar by 1 million tons to 5.5 million tons.
Steel importers say that some 3.5 million tons of steel is being imported every year from different countries including South Africa, Japan, Taiwan, United States, Australia, Korea and some European countries to cater for local needs.
However, they were of the view that the consumption of galvanised steel in the country stands at 800,000 tons annually, while it is being mainly imported from Ukraine as the Pakistan Steel could only produce 100,000 tons of galvanised steel annually.
"Galvanised coils or sheets are used in cottage industry where small household items are made like bucket and ducting of air-conditioners, nevertheless, it has no industrial consumption," said another trader.