The price of the rods has experienced a decrease in its price in the last week that ranges from 10,000 to 4,000 pesos per bundle, according to a survey carried out in various hardware stores in Santo Domingo.
The reduction in the cost of rod is described in some representatives of the sector as part of a downward trend in price of steel and other Construction materials.
At the M&M hardware store, located at kilometer 14 of the Duarte highway, the price of the bundle (equal to 22.6 quintals) was placed yesterday at 73,000 pesos, when just a week ago it was sold at 83,000.
This was stated by Mónica Montero, sales manager, who indicated, however, that the decrease has not yet translated into an improvement in sales, in part, because customers decide to wait for the trend to continue before proceeding to make their purchases. .
“It always happens that, when products go down, sales also go down, because people wait to see if it will continue to go down before buying,” says Montero, who assures that in addition the price of cement it has had a decrease of about five pesos, going from RD$455 to RD$450 per cover.
At Ferremix, in Villa Mella, a reduction in price of the bundle of rod of about 4,400 pesos, varying from 83,400 to 79,000 pesos.
“Outside, the drop in raw materials and freight rates is perceived. This could be a favorable change in trend”President of Acoprovi
In Bloques San Miguel, located in Santo Domingo Este, it was reported that the bundle went from 85,000 last week to 80,998 this week, for a reduction of 4,002 pesos. per quintal price of the rod varies from 3,800 pesos to 3,557 in that establishment.
For the president of the Chamber of Commerce and Production of Santiago, Carlos Iglesias Rodríguez, the reduction of price of the rod around 11.72% and argued that it was a sign that “we are in the process of de-escalation of steel prices.”
Rodríguez, who is president of the Bellón Group, pointed out that, compared to June 2021, several articles in the sector have experienced declines. He cited that the electrical wire was down 15%; angle iron, 33%; steel nails, 10%; iron profiles, 30%; welding, 15%; mesh tube, 20%; PVC pipes, 10%; zinc, 10%; beam, 10% and expanded metal, 15%.
The current decline of price of the rod coincides with the downward trend in inflation recently announced by the Central Bank.
The state agency reported that for last August, the rate of price (IPC) was 0.21, compared to the month of July of this 2022, which indicates as the lowest monthly inflation of the last 27 months.
The report states that, as in the rest of the world’s economies, the evolution of inflation in the domestic sphere continues to be affected by external factors that are more persistent than expected due to the duration of the Russia-Ukraine conflict, which has generated additional upward pressure on imported raw materials that are used as input for local production.
“However, during the last few weeks there has been a decrease in the price of these inputs, which in some cases have reached price levels that are lower or similar to those existing before the pandemic, due to the slowdown in global demand and improvements in the production and distribution chain, combined with a reduction in maritime transport that have been gradually moderating”.
The Index of Direct Costs of Housing Construction issued by the National Statistics Office reported an increase of 1.85 points last July, when it stood at 228.16, after it was 226.31 in June.
This increase was largely forced by the cost of the Construction materials, which were still experiencing increases that the ONE set at 9.35% in steel; 4.21% in concrete and 2.37% in aggregates.