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Traders are manipulating supply and demand, the absence of role of agencies involved
11/08/2011
Rising prices of construction materials aborted dreams of borrowers
BAGHDAD - Bashir Khazaal
Follow the owners coefficient of construction materials, retail sale - Alsklat - daily newspapers and news from advances real estate and loans to employees granted by a number of banks against the benefits of breaking the back, With all the news about the intention of the state or banks to grant housing loans to citizens jump prices, bricks, iron, cement, sand and Alhso jumps crazy consistent with the rest of materials complementary Kalabwab and ceramics, glass, health workers, installations electrical what dispel the dreams of those seeking to get on the roof to live under it away on rent and become a loan obtained to no value to them. traders and owners of factories, shops, construction of their part, attribute the reasons for the high prices to the law of supply and demand, the smaller the width increased demand and prices rose, pointing out that there Marqlat at border crossing points deter the entry of imported cement and steel, ceramics and other is carried by two costly additional reflected recently on their prices.
The owners - Alsklat - did not find a logical reason for the rising prices of sand, plaster, brick and Alhso material is being imported, but they noted that the high prices is in line with the rising prices of other construction materials.
False accounts
Adnan Al Alawi officer obtained a loan from a bank of good for the purpose of building (s) owned by the said: I borrowed the amount of fifty million dinars in the hope of building a piece of residential spaces, 150 square meters, and agreed with the contractor on the $ 45 million Danarkajor for building materials and labor or so-called (dedicated and work) to pay tribute to two floors 120-square-meters and the duration of time not to exceed five months, but the contractor stopped after the end of the structure fully and an amount of six million dinars extra because of the high prices of construction materials and labor costs, and we entered into a cycle of bickering and threats and intimidation, without any benefit, and when I tried to deal with another contractor to complement the rest of the business, a list of account to supplement the construction price of $ seven million dinars, the matter remained pending until the recovery of part of the amount I've given to the contractor in the first time that I pay the interest on the loan totaling more than twenty million dinars.
And between Allawi said the disorder prices of raw materials used in construction like this without supervision Awsatrh of the state shares in the complexity of the housing problem instead of solving it and enter the borrowers in a cycle of repayment and interest to no avail, called on the government to enter into market competition with the traders to maintain the prices of construction materials.
Loans, but
Ehab Abu borrowed $ 25 million from the Housing Fund to build a piece of land in the session area 200 square meters, but the delay in receiving the loan installments to make it stop construction because of the high prices of iron and cement.
Abu Ihab says: agreed the beginning of 2009 with the contractor to build a house for 35 million dinars, gave him 10 million dinars as a prelude to the rest of the premiums that receives the loan and stipulated that the house received a month after the receipt of final payment. Adds that "the gestures work in the beginning was happy that the contractor delivered the first batch and the prices were appropriate, but the lag started after receiving the first installment, as the prices of construction materials increased gradually, especially cement, iron and brick, was modified many aspects of map construction to save time and materials, and with over time and the delay in the second installment apologized contractor for the work being a Aeetmkn to buy materials at old prices as well as higher wages for workers, after the worker was paid 15 thousand dinars, and "HISTORY" 50 thousand dinars became a worker earns 25 thousand dinars and "HISTORY" 75 thousand dinars ".
And he received the final payment early this year and relied on the same building is part of the final business, the doubling of prices of construction materials, pointing out that he could not make the house habitable, so far, for lack of the loan and because it borrowed funds many of the relatives, in addition to the premiums due from it to Housing Fund.
He called Abu Ihab government to prepare a study and realistic about the value of the loan for housing compared with the prices of construction materials and labor costs, he said, adding that private sector support for the production of construction materials of the most important necessities to curb the monopoly of traders the market and price manipulation, and damage to the citizen and the abortion of his dreams in getting on the roof of harboring him with his family.
Volatile prices
Grace Abdul-Jabbar's (Scalh) for the sale of construction materials in the area of people talked about the mechanism of the market by saying: We buy from the merchant President, Valhdid to Aistorda owner (Alscalh) as well as cement and the rest of the other materials except sand, gravel and bricks that reaches us by contractors and carriers and owners of factories of the provinces and the outskirts of the capital Baghdad.
"The problem we face is in the prices of the basic price of a tonne of rebar fetched to one million and eighty thousand dinars, and Sardbl bricks 800 000 dinars, the homeland of cement 180 000 dinars, and dump sand 450 000 dinars, and dump gravel 300 thousand dinars," he acknowledged that prices are not not cheap medium, the fact that even if construction of the house with an area of fifty meters square requires large quantities of these materials up to 20 million dinars, except labor costs, this amount of Aimitlleke all.
"The only two months ago was the price per ton of iron, 800 thousand dinars, and rose abruptly to the current price as well as the cement that was sold at 150 thousand dinars per ton, it's the other that of local materials like pebbles, sand and bricks up the other once the height of the importer."
Allawi attributed the cause of high prices to get the staff on advances and the large number of small building blocks, noting that whenever there was news of the launch of the bank real estate loans or advances to employees, even if a simple rise in prices and construction of up to astronomical prices.
Import problems
Abu Haidar, a shop owner to sell construction materials in Amiriya, because the reasons for high prices to supply and demand, the two presidents stressed that traders are moving the market according to the requirements of need and in conjunction of the decisions driving the demand to increase or trend towards reconstruction.
He said Abu Haider said traders - mostly outside the country - follow the movement of construction taking place in the country and on this basis, they provide the requirements of reconstruction, for example, if there was a major campaign to build schools by the state this means the withdrawal of large amounts of iron, cement and other supplies imported, resulting in lack of supply and therefore high price, pointing to the existence of Marqlat major border crossings hinder the introduction of construction materials, especially after the application of procedures by the standardization and quality control. He said the shipment of iron belonging to the dealer who is dealing with it parked in the port for more than a month, indicating that the shipment is a ship loaded with hundreds of thousands of tons, noting that the delay resulted in the entry for the continued lack of supply with demand and thus the high price per ton of iron.
Abu Haider called the introduction of measures to facilitate the construction materials for the country's need to maintain it, and prices that will contribute to building new housing units at reasonable rates.
Supply and demand
Economic researcher Star Mayahi said the reasons for fluctuating prices of construction materials and lack of stability, adding that this is not about supply and demand alone, there is some speculation and brokerage activities affecting the price rises, the trader will harm him slump his goods at the same time follow the ways of the monopoly of the market to raise prices, in the seventies and eighties of the century the past, the State sets the price of a particular merchant in addition to prices, government-backed, and therefore to increase Atjd negligible.
He noted that the political open market that followed the Iraqi economy does not have the support of prices and Anicol it is not good, but the opposite, but the elements of reliance on this economic policy is available to us at the present time, the private sector is semi-disabled and the markets open the doors either imported under quality inspection is very weak He explained that local industries produce at prices expensive but not block any of the need because of the absence of industrial infrastructure in the country, electricity, fuel, workforce, water, and therefore have to rely on the importer, who is subject to speculation and to charge that accumulates at the end of the day on the shoulders of the citizen. He stressed the need to specify the state even on a temporary basis in agreement with the dealers prices of construction materials and to punish traders who exceed stressing that the global market is rich kinds are good and cheap construction materials are subject to standard specifications of Iraq. And called Mayahi government interference with its institutions, "the company's general trading of construction materials" or the mixed sector to compete with the private sector in order to control prices and limit the height of the citizen, including the borrower can benefit from the amounts borrowed and the construction of housing units Tdmh with his family.
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