By Muhammad Asad Tahir Bhawana ISLAMABAD, April 18 (INP-WealthPK): Steel production in Pakistan increased by 13.8 percent in the first quarter of the fiscal year 2022 compared to the same period of the previous year when a decline of 8.1 percent was recorded, reports WealthPK. According to the State Bank of Pakistan (SBP), flat and long steel both contributed higher output this year. In long steel, billet production grew by 14.9 percent, adding more to the 26 percent growth of last year. Long steel is mostly used in building and construction. Its demand increases following an increase in the development of the construction sector. Flat steel is used in the home appliance and automobile industries. Both industries show an upward trend in the current fiscal year, which increases demand for flat steel. In flat steel, the output of hot-rolled steel increased by 12.5 percent during the first quarter of FY22 compared to the decline of 30.1 percent in the same period of the last year (2021). China dominates the international market of steel, which contributed around 53 percent and 51 percent of the share in the international market in terms of production and consumption, respectively. Since China is the largest exporter of steel, Pakistan is also considering working in collaboration with it to increase productivity of Pakistan-made steel. Pakistan's steel market is mainly disorganized. The organized sector only includes around 20 players, contributing 80 percent to the total market. There are about nine entities listed on the Pakistan Stock Exchange (PSX), and they have a major contribution to the local steel production and enjoy more than 50 percent share in local sales. These entities collectively generated a revenue of PKR150 billion in 2020. In third-world economies like Pakistan, the steel industry plays a vital role, as industrial development, infrastructure expansion, and construction-related projects need a huge amount of steel. However, despite the unavoidable need for the growth of the steel industry, Pakistan is still behind in the desired production of steel. The current situation is also worsening. Owing to the increase in international steel prices, players in the sector increased the prices of cold-rolled coils (CRC) and hot-dipped galvanized coils (HDGC) by PKR3,000 per tonne. After revising the prices, CRC reached PKR205,500 per tonne, and HDGC PKR216,800 per tonne. Merchants told WealthPK that the rise in prices in the local market is slower than the rise in international market prices. Following the increase in steel prices, the Federal Board of Revenue (FBR) on 5th April 2022 announced a fixed GST of PKR164,037 per metric tonne on steel bars and other long profiles. Experts say the increase in GST was necessary due to the recent hike in the prices of local and international markets to avoid the likely loss of revenue. According to them, steel prices are still expected to increase following the Russia-Ukraine conflict. Both countries are top world producers and consumers of steel.