Philippine industry leaders said that prices of steel goods should rise and stabilize early in 2009 after falling steeply in the past two quarters as raw materials become costlier and demand may be boosted by state infrastructure spending and house sales late last week.
Mr Salvio D Perez, president of Filipino Galvanizers Institute, said that prices of flat steel sheets used for roofing and gutters will rise by 3% to 5% within the first quarter from current prices. An 8 foot long 0.4mm galvanized iron sheet, which currently costs PHP 380, may rise to PHP 400. He added that "We are looking at price increases in the first quarter because prices of raw materials are going up after foreign mills started production cutbacks."
Mr Alexander Wang Ariza chairman of TKC steel subsidiary Zhangzhou Stronghold Steel Works Co Limited said that prices of angle bars, reinforcing bars and similar products may also rise slightly this year. He added that "Generally, since hitting bottom in November, market prices have bounced back by 10% to 20% in January 2009. Moving forward, for February and March 2009, there may be small increases, but not at the same rates as the first half last year maybe 5% to 10% from current prices."
Mr Aguirre said that still, increase in prices of steel goods may not cause realty firms to adjust prices. He added that "I do not know how realty firms will reflect the increase but if they pass it on, they will bear the risk. And most of their prices are already priced high following steel price spikes in the first half of 2008 anyway."
Source: Business World Online
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