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Iron price rise due to global shortage

29 May 2021

The Consumer Protection Authority (CPA) has issued a clarification on the price of iron in the sultanate’s markets.

The authority stated thatthrough its continuous follow-up of the prices of goods and services, whether at the local, Gulf or international levels, it has observed that the price of iron in the sultanate’s markets in general has been affected by the global price rise that occurs from time to time.

CPA confirmed that the price increase is due to several reasons such as the price of raw materials for the scrap iron industry coming from India, and some Asian countries that increased prices 35-40 per cent. It also confirmed that most of the world’s ports were closed due to the COVID-19 pandemic, which led to an increase in freight charges by up to 60 per cent . 

‘China has taken several measures that contributed to the rise in iron prices. Brazil, the largest iron producer in the world, has also decreased production. Many iron factories in the world have been affected by the pandemic and reduced production which has created price instability.’

The authority confirmed that it monitors markets and suppliers to prevent hoarding of iron and increase in prices. It urged consumers to postpone purchase for a period or not to purchase big quantities of iron at once.

‘There are efforts all over the world to increase production and reduce iron prices,’ CPA stated.

 

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