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Iron prices surge by 10% impacting Building Costs



Iron prices surge by 10% impacting Building Costs

The prices of iron bars in Mauritius have increased this February compared to prices four months ago. According to importers, if the crisis in the Red Sea persists, prices could continue to rise. The possibility of a shortage is also not ruled out.

A blow for those embarking on construction projects. The prices of iron bars have seen a 10% increase this February. Taslim Banbooa, manager at Joomun Group, one of the main importers of iron bars in Mauritius, has confirmed this. For example, he says, the price of an 8mm iron bar has risen from Rs 167 per unit last October to Rs 184 this February.

Reasons given for this price increase include the rising cost of iron bars in the producing country, as well as the appreciation of the dollar against the Mauritian rupee and geopolitical tensions in the Middle East. “We mainly import iron bars from Turkey, so we should expect the consequences of the attacks in the Red Sea,” explains the speaker. He warns that if the situation continues, it is likely that there will be further price increases on iron bars in future shipments.

Mahen Gowressoo, director of Samlo Koyenco Steel, agrees. “The prices of iron bars have risen by more than 10% this February,” he reveals. In addition to the high cost of raw materials, freight costs have also increased. “Now you have to pay between USD 600 and USD 1,000 more for a 20-foot container,” he laments. It should be noted that the company mainly imports iron bars from India, China, and Turkey.

Importers in Mauritius are facing challenges due to the crisis in the Red Sea, which is causing delays in shipments reaching the country. This is leading to concerns about a potential shortage of iron bars in the local market, which could result in further price increases. Suppliers in Turkey are also not responding to calls and emails, with the focus shifting to larger export markets due to the problems in the Middle East.

In addition to maritime tensions, importers are also struggling with a shortage of foreign currency, making it difficult to obtain the necessary funds for purchases from overseas suppliers. As a result, a shortage of iron bars in the market is expected.

Source: Defi Media

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