Algeria : prices of iron, cement and wood on steady rise

The prices of building materials including iron, cement and wood have witnessed a skyrocketing hike over the past few weeks on the Algerian market.

The prices of building materials including iron, cement and wood have witnessed a skyrocketing hike over the past few weeks on the Algerian market.

The price of iron destined for building purposes has climbed to 840 dollars a tonne this year compared with 320 dollars a tonne in 2003 and 265 dollars a tonne in December 2002.

In local currency, the price of a tonne of iron has reached over 10.000 dinars whereas a tonne of cement has recorded a staggering rise reaching 900 dinars.

15 to 20% of this sum should be added owing to increased transport expenses notably towards the regions of the south and the high plateaux.

The Algerian government is now studying how best to curb this steep price hikes which have a direct impact on the price of one square meter in building projects.

Currently, the price of one square meter varies between 22.000 and 26.000 dinars.

Most of the public and private companies in charge of construction have demanded a rise in the square meter price to at least 34.000 dinars ostensibly to cover their overrun expenses brought about by the price hike in building materials on the national market.

These companies argue that such a price hike was a prerequisite if the achievement of ongoing construction projects including new housing units and other facilities was to continue without any hindrance.