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TITLE |
Steel supply shortage could cripple Malaysian construction industry |
WRITER |
administrator |
DATE |
2008-01-14 09:03:52 |
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Steel supply shortage could cripple Malaysian construction industry
January 13, 2008
The Star recently reported that shortage of supply and rising steel and cement prices could cripple the Malaysia construction industry and delay the implementation of the 9th Malaysia Plan if there was no intervention from the authorities.
In a recent statement, the Building Industry Presidents\' Council said that local builders were being forced to buy steel bars at artificially inflated prices that were way above the Government control price but this also did not guarantee the availability of steel bars. The council said that supply is uncertain and there is shortage in several sizes of steel bars especially those below 10mm range. This would lead to slow down in construction works.
The Building Industry Presidents\' Council C said there was uncertainty in the supply of both materials despite producers charging higher prices than that of the officially approved prices.
The industry body said the supply shortage and volatile prices of steel and cement may slow growth in the construction sector, which includes property development and delay implementation of projects. It added that price controls on steel bars and cement should be removed and imports of steel and cement should be allowed.
The automated pricing mechanism, which has taken effect on January 1st 2008, would push prices higher and given that APM was a cost plus mechanism, it would encourage profiteering among certain parties. The council recommended the removal of price control on steel bars and cement, as well as a temporary stoppage on export of steel bars and billets.
Resorce from www.steelguru.com |
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