Prices of Construction Supplies Go High

April 20, 2007	(Be the first to rate this story!)  Loading ...
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The government has come up with a new hike in the ceiling prices of steel bars and billets, which have been appreciated by up to 20 per cent to cater to steel millers’ demand. The new shift in the price trend has been highly criticized by the builders and property developers.

This may bring a further increase in the prices of residential property. The lower income group is likely to be the end losers, says PKMM President Datuk Roslan Awang Chik.

The government’s decision has come in response of the steel millers’ request who wanted to raise the ceiling price of steel bars and billets, saying them to bring at par with international pricing.

There have been claims within the construction sector of millers exporting the materials to get good prices thereby creating an artificial shortage in the domestic market.

Contrary to this, the builders want a liberalization of the steel market so that they can import required construction material, instead of relying on domestic millers. Competition would certainly bring a drop in steel prices.

The contractors and developers have also forwarded the request to the Domestic Trade and Consumer Affairs Ministry to monitor the adherence to the new ceiling price and curtailing surcharges like transportation.

Such a sharp increase in prices of construction material can disrupt the delivery system of projects under the Ninth Malaysian Plan (2006-2010).

News Published Under:   Real Estate India |

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