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Friday, May 13, 2005
Prices of steel to go down: trade dep't
THE Department of Trade and Industry-Davao City Field Office (DTI-DCFO) reported that the prevailing price of steel in Mindanao is expected to reduce in the succeeding months.
DTI-DCFO director Teolulo Pasawa said Thursday that with the re-opening of a steel mill in Iligan City, the supply of steel in the island will become sufficient.
In the wake of this development, steel dealers in the island do not have to incur huge amount as transportation cost.
"This is just our speculation. Bababa dapat kasi may supply na from a nearer source. Before kasi they have to get their steel supply from Manila, so, malaki ang transport cost nila," he said.
Pasawa also said that dealers do not have to stock steel in their stores for a longer period.
"Dati, three months ang stocking ng dealers, natutulog lang ang kapital. This time na may malapit na na source, they don't have to stock their product that long. Kapag nag-stock aksi sila ng mas marami, mas malaking capital ang kailangan. Ang that capitalization ay natutulog lang, hindi tumatakbo," he said.
Pasawa said that with a shorter period of stocking and lesser volume of stocks, the movement of goods and capitalization is faster, therefore, the recovery of profit is likewise on a fast pace.
Present price of steelbars (10 millimeters) is pegged at P104; steelwires (No. 16), P48; steelwires (No. 18), P55; and common wirenail, P40. This steel mill in Iligan re-opened early this year when it was bought by Indian nationals from the former owners.
"In the next few months hopefully we can already feel the effect of the plant's re-opening. At sana din, hindi i-reason out ng dealers na hindi sila magbaba because of continuing power rate increase," he said. (JMM)
For Bisaya stories from Davao. Click here. (May 13, 2005 issue)
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