SANTO DOMINGO- While hardware store owners and small construction companies claim that the prices of rebar and cement have skyrocketed in recent days, the Dominican Steel Association (Adoacero) stated in a press release yesterday that it has not increased steel prices.
Representatives from Adoacero state that while prices have risen in countries like Colombia, the opposite has occurred in the Dominican Republic, despite the trend in international markets.
"As a regional reference, the trend in rebar prices in the Dominican market has been downward throughout the second half of 2023, while in countries like Colombia rebar prices have risen during the same period," the association noted in the statement.
According to Adoacero, "domestic producers have made efforts to absorb external shocks and have not passed these changes on to Dominican consumers.".
He explained that the Direct Housing Construction Cost Index (ICDV), prepared monthly by the National Statistics Office (ONE) together with the Dominican Association of Housing Builders and Promoters (Acoprovi), "reflects a decrease of -4.67% in the cost of housing construction in the metropolitan region compared to October 2022.".
The steel industry stated that they have reduced the impact of foreign trade in order not to pass on the real cost of steel rods and other steel products to the local consumer.
He added that the ONE document allows one to know the monthly variations experienced by the cost of construction of four types of housing in the National District and the province of Santo Domingo.
"Specifically focusing on the steel cost subgroup, which is also measured by the National Statistics Office (ONE) through the ICDV, steel products have suffered a decrease for the period from October 2022 to the same month of this year, with an overall average over the last twelve months of -23.11%":
- -22.8% for single-family homes
- -22.8% for two-story housing
- -24.02% for four-story homes
- -22.8% for homes of eight levels or more
Associations say the opposite
The Dominican Confederation of Micro, Small and Medium Construction Companies (Copymecon) expressed concern yesterday about the increase in the cost of steel and cement, which according to their statements ranges between 6 and 9%, respectively.
Eliseo Cristopher, president of that union, indicated that this will have a negative effect on the cost of housing, noting that in the case of cement it registered an increase of about 50 pesos.
Regarding rebar, he said that a ton used to cost 62,500 pesos, and currently costs 69,000 pesos.
"That price can increase, and it's bought by the quintal," he said, noting that these materials have the greatest impact on the cost of a construction project and are among the least expensive.
Hardware stores
"Yes. It's true. The increase is real, both in the price of a bag of cement and in the price of a bundle of rebar," Arturo Espinal, interim president of the Dominican Association of Hardware Stores (Asodefe), told Diario Libre. He believes there are no economic factors that justify the recent price increases, which have been occurring since last week.
"We understand that this is a hidden blow that has been dealt to the construction industry with these variations," said the merchant, while clarifying that distributors from external companies are also involved in the supply chain.
Espinal indicated that members of the organization confirmed the price increases for both inputs, which have seen average increases of 40 pesos for cement and 3,000 pesos per ton of rebar. "We have received another blow from cement and steel producers," he said.
