Middle East

Kuwait Commerce Construction Material Price Monitoring

Kuwait’s Ministry of Commerce and Industry monitors the market to control the prices of construction materials that are skyrocketing worldwide. The ministry has issued a number of resolutions to maintain prices for construction materials, including banning the import and export of cement, wood and iron, but allowing citizens to import construction materials for personal use.

The ministry also sent a team to monitor rising markets and luxury construction stores. “We support commercial and economic activities, ensure that local market goods, construction materials and services meet Gulf and international standards, and protect consumers from intentional price increases,” the ministry said. Said Mohammad al-Eneji, Assistant Secretary of the Ministry. Technology trade development said.

The ministry has admitted that the prices of building materials have generally risen since December 2020, but the ministry is paying close attention to stores that violate price regulations and has introduced 29 stores to the prosecution since January. Meanwhile, the ministry has tackled the obstacles facing local factories. Al-Enezi told KUNA that a ton of iron was sold for 248 Kuwaiti Dinar (KD) (US $ 815) and KD 1.05-1.2, the cheapest of the neighboring countries. He added that the rise in prices was caused by the suspension of sea freight, adding that a surge in coronavirus cases and deaths in India, such as commodities being forced to stay in ports for more than 90 days.

Daral al-Shemeri, the ministry’s head of supply, said the ministry is subsidizing construction materials such as iron, cement, ready-mixed concrete, insulated white and black bricks, and air conditioning equipment. Al-Shemmeri told KUNA that in May 750 people benefited from subsidizing materials at a value of 13.7 million kuna (US $ 45 million).

Dr. Nayef Al-Shemmeri, a professor of economics at Kuwait University, said prices are a matter of supply, not demand. Demand was “very limited,” he added. Domestic production of cement is about 9 million tonnes per year, but demand is 6 million tonnes, he said. The raw materials were imported into steelmaking, which has an annual production capacity of 1.5 million tonnes, but the market needs were 1.2 million to 1.5 million tonnes. Al-Shemmeri said not only could it open the door to neighboring markets, but it could also lower prices by lowering tariffs and administration fees. He also proposed to set up a warehouse for affordable storage. Archemri also called for the recycling of copper and iron to provide raw materials to local factories.

Source-KUNA


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https://www.timeskuwait.com/news/kuwait-commerce-min-monitoring-construction-materials-prices/ Kuwait Commerce Construction Material Price Monitoring

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