Price of steel rises on surging demand
Worldwide demand for steel has triggered its record high increases in the past months and with the surging demand, it has nowhere to go but further up, an executive from a multinational steel company said in an interview.
Joel G. Velasco, area manager in the
The increase was triggered in the month of February in which it reached to a record high of around 30 percent. However, despite these huge increases, Velasco stressed that there were still high demand for big projects worldwide.
"Demand for high rise buildings are still significantly increasing as well as residential and industrial but this have been factors as well for the increase in prizes," Velasco pointed out.
He added that the worldwide demand for steel is still up as demand in countries such as
"Steel is an imported construction material so these countries get all the steel making its cost a lot more expensive for us in the country. Steel prices are very volatile because its price changes everyday depending on its demand," he said.
Aside from the demand of steel, gas prices is also another contributing factor for its increase.
Prices for gas has now reached to 120 dollars per barrel in the worldwide market, said Velasco.
Locally, steel is priced at P60 which is almost 100 percent compared to its P38 price last year. And this selling price is still seen to increase 15 percent this year per metric ton, added Velasco.
Currently, volatile prices of steel have been worrying the local construction sector especially the housing and real estate developers.
However, despite this spikes in the market Velasco stressed that they are still very much optimistic of the market because of several on-going and incoming development projects.
He said that these projects just show the investors' confidence in the country as growth area for their businesses despite inflation and price crisis.
Zamil Steel is a steel buildings manufacturer and solutions provider. The company has a head office in
- Latest
- Trending
