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Rising steel costs prevent construction growth
posted on: Apr 27 2010 15:43 by Royston. Viewed 318 times.
The Association of Builders and Housing Developers (Acoprovi) has expressed alarm at the high prices of reinforcing steel (rebar) for construction. 
The President of Acorpovi, Jaime Gonzalez, said that, since December, the prices of rebar have continued to grow, increasing every 15 days. He said that in early January it was RD$28,000 and three weeks ago rose to RD$36,000 and now it is RD$40,000.
He warned that this situation will halt the development of housing. "The situation is alarming, and with it the builders are telling us they are building practically nothing." He urged the Ministry of Industry and Commerce to intervene in the situation to try to curb this upward trend of re-bar prices.
He considered that in terms of development, private construction has not restarted after the decline in growth caused by the impact of recent global economic crisis. However he said that the public sector had shown a rebound, by the start of a series of infrastructure works, including the second line of Metro de Santo Domingo, Duarte Corridor and other projects in the interior.
Gonzalez said the government had to achieve price stability in the basic materials for construction. He said the development of private construction depends crucially on stability in prices of materials, exchange rate and bank interest rates. If these elements are destabilized, rising costs in the industry will stagnate development, he warned.
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