Investigations have begun following a two week shortage of rebar tie wire in Saudi Arabia.
The kingdom’s ministry of commerce is assessing the situation after receiving a number of complains about the effects of supply to medium and small-scale construction projects. The shortage has also caused price increases of more than 100% in some cases.
The product is especially scarce in the industrial eastern region of Saudi Arabia and contractors have confirmed that a recent surge in the kingdom’s cement and steel prices has led to an increase in all building material prices, which is expected to disrupt projects across the construction sector.
The price of one roll of tie wire was previously US $9.3 and has now increased to $ 18.6 while in Medina, western Saudi Arabia the price jumped to $29.3 this week.
The situation is of particular concern as it has come at a time when construction projects were expected to increase.
Some contractors believe the shortage is due to low levels of tie-wire production at steel mills, along with low imports and logistics issues. Speculators are another possible cause of the problem.
Last year undersecretary at Saudi Arabia’s Ministry of Trade and Industry, Khaled Suleiman said publically that Saudi Arabia would increase steel production to reduce dependence on imports. Suleiman predicted the kingdom would require no steel imports “within a few years”.
The ministry of commerce and industry is currently investigating the shortage and pricing in an effort to resolve the issue before it obstructs projects any further.