Local steel manufacturers have increased prices of their products to commensurate with the increase in utility tariffs announced recently by the Public Utilities Regulatory Commission (PURC).

Effective 1st November 2013, a tonne of iron rods will sell at GH¢1,770, up from GH¢1,650, an increase of GH¢120. The situation has compounded the existing woes of the local steel manufacturing industry, which is reeling under stiff competition from importers of inferior mild steel coils, and exporters of ferrous scrap metals.

A highly placed industry source, who spoke to The Chronicle at Tema yesterday, said since the beginning of this month, all the seven local steel manufacturing companies had been handed a 40 per cent increase in electricity and 50 per cent in water.

The source noted that the only way to save the industry was for the government to intervene with some of the activities in the sector, including vigilance at the ports where the import of steel coils are routed, and to ensure that the right taxes are paid on them.

He warned that if the government did not intervene in the current tariffs hike and the activities of ferrous scrap dealers, the industry could collapse. The local steel manufacturing industry is presently fighting for the government to maintain a recently passed legislation, banning the export of ferrous metal scraps.

The seven local steel manufacturing companies, with a total capacity of 80,000 metric tonnes and a workforce of 5,000, is receiving only 45,000 tonnes of scraps.