Contractors disagree saying the prices are skyrocketing and are driving them fast toward bankruptcy.
“Steel prices are stable now and business is good. There are enough reserves to meet the current and future needs of consumers,” said one trader.
Jeddah-based traders Muhammad Ali Al-Suhaili, Abdul Rahman Al-Saadi and Maatouq Al-Qarhi said they expect the prices to remain stable following the steps taken by authorities, which they say have stopped a number of businesses from profiteering.
The Ministry of Industry and Commerce issued a new price list to all regions in the Kingdom based on factory prices, excluding transport costs.
The big steel factories in the Kingdom accused distributors of inflating prices. They said distributors added up SR700 per ton. The factories asked citizens to complain to them or to the ministry in case any distributor unfairly raises the prices.
Meanwhile, a number of contractors denied that prices had stabilized and said the crisis is still continuing. “This crisis is the result of some traders hoarding large quantities of steel to artificially raise prices,” one contractor said.
The contractors expected further price hikes in the near future and said the attitude of distributors and factories did not bode well for a solution in the near future.
“The serious drop in supply and the high prices of steel have caused me huge losses and hampered a number of my projects,” said Dakheel Al-Sulami, a contractor.
He said he has never seen such price hikes during the 20 years he has been in business.
