The steel prices receded in K.S.A in the wake of the oil price recession according to a report published by “Al Watan” Saudi daily newspaper.
A number of real estate experts expected the steel prices to reach 1500 SAR per ton, which is equivalent to 400 Dollars, in the coming period due to the oil prices plunge which reached 48 Dollars per barrel.
The steel price recession will encourage properties developers to expedite their constructions processes, including the Minsitry of Housing projects.
The Saudi economic expert “Abdullah Al Maghlouth” said to Al Watan that oil is considered on the main poignant factors in the Saudi economy, which controls the prices of many other commodities including building components prices.
Al Maghlouth that the rising demand rate and affordability of supply will expedite the real estate developing operation, however, not to an extreme extent due to the existence of other obstacles like the lack of laborforce.
He said also that steel prices will rise again once the oil prices recover, the only benefactor though of the current market cycle is the Saudi consumer.