Government raises prices of steel products
BY DALILAH IBRAHIM AND CLARENCE CHUAKUALA LUMPUR: The Government has increased the ceiling price of billets by RM419 per tonne and the retail price of steel bars by RM356 per tonne, following the rise in scrap iron price in the international market.
The Government, however, was still studying the proposal by industry players to introduce an automatic price mechanism for steel products.
In announcing the increase, which would take effect immediately, Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said the price of billets now ranged between RM1,294 and RM1,389 per tonne – an increase of between 43% and 48% – depending on its size.
He added that prices of steel bars now ranged between RM1,531 and RM1,675 per tonne, an increase of between 27% and 30%.
“The increase was based on the industry’s average production cost including the cost of scrap iron, labour, manufacturing, distribution and distributor’s margin,” said Shafie at the ministry yesterday.
The Malaysian Iron and Steel Federation had earlier proposed an increase of RM600 per tonne for each product.
Shafie said the decision would only create a minimal increase in the prices of low-cost housing and medium-low-cost apartments of between RM30 and RM712 per unit.
“Since many of the People’s Housing Projects are handled by the National Housing Department, the Government will have to add an additional allocation of RM35.5mil for the projects.” he said.
He said action would be taken under the Supply Control Act against any party who tried to create an artificial shortage of steel-bar products.
“The Government hopes that the problems faced by the construction contractors in obtaining steel bars is resolved with the increase of retail ceiling price of steel bars,” said Shafie.
The National House Buyers Association said the higher cost of steel would have minimal effect on house prices and urged developers against profiteering.
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