Steel Prices Rise Hit Construction Industry Hard
The rise in prices of steel has hit the construction industry hard. Expenditure on steel constitutes about 15% of any construction project. In projects such as construction of bridges, it goes up to 20% to 25%. Stability in prices of steels is an important factor in signing government or private projects. But, the way in which steel prices are moving upward in recent months has come a rude shock to the builders and contractors. Though the prices are going up constantly in recent years, the period from June to December has seen sharp increase. The retail price of a tonne of steel (medium ranged brands) was quoted as Rs 64,000 in Tiruchi in the first week of January. It was Rs 42,000 in June. The price has gone up by Rs 22,000 within 6 months and almost doubled in a year. The rate of steels marketed by top rated steel companies was hovering around Rs 69,000 a tonne in retail markets in Tiruchi. It was around Rs 49,000 in June. It is unprecedented. It has dealt a severe blow to the builders and contractors irrespective of the volume of projects. i.
Tags : ALLIED Steel construction industry Prices Rise