Steel prices fell by nearly 25% in the last nine months due to lower demand from China’s real estate sector, Business Daily newspaper reported, citing Kenya Metal and Allied Sector Bobby Johnson.
He said that prices of refurbished steel bars have decreased significantly to 95 Shillings per kilogramme plus value-added tax from 130 per kilogramme.
In addition, prices of steel tubes have declined from 160 to 120 Shillings in the same period.
According to the report, certain steel products saw prices increase by up to 40 percent to 180 Shillings in the first quarter of 2022 due to the Russia-Ukraine war.
China is one of the major buyers of steel from global producers. On the other hand, Russia and Ukraine account for almost 20% of the worldwide steel export.
Elsewhere, Johnson said the government needs to redirect the excess power during off-peak hours to the industry at a subsidised rate, given that steel is the largest consumer of electricity.
(Editing by Seban Scaria email@example.com )