Auto prices may increase in Brunei because of high steel prices

Auto prices may increase in Brunei because of high steel prices

As previously reported by SteelOrbis, the rising steel prices have started to affect the house and building prices in Brunei. Currently, the soaring steel prices may cause an increase in automobile prices. Automobile prices are expected to increase by around 20% in about 5-6 months while motorcycle prices will go up by around 18%. It is also reported that car and motorcycle prices must be adjusted by car producers because of the increase in steel prices, especially in hot and cold rolled coil. Worldwide steel shortfalls due to strong demand from the fast growing economy of China and reconstruction of Iraq have caused global prices of steel to increase. Meanwhile, local contractors are complaining regarding the rising steel prices. Contractors who have signed contracts with land owners to build houses have to absorb the increase in steel prices.