Unprecedented steel prices hit construction sector

Unprecedented steel prices hit construction sector

Excessive steel prices started to affect the house and building prices in Brunei. Brunei's building contractors has been forced to raise the cost on consumers as steel prices have gone up by 30% due to global demand for steel. Local building contractors are taking attitude against the authorities that have allowed the price of steel and other building materials to increase so much without any warning. If the price increases should not blocked, this situation could cause a recession period in the Brunei's construction sector. The reconstruction of Iraq and the strong demand coming from China which causes a worldwide steel scarcity are the two significant factors that increased the steel prices. Brunei's building contractors are waiting for interference from concerned authorities to abort the increase in construction material prices. Furthermore, contractors request from the authorities to include the building materials into controlled items. Thus, suppliers would not be able to increase prices without receiving approval from the authorities. In such as case, it seems that surging steel prices will be an outstanding issue for Brunei's construction sector in the coming months.