High demand for scrap pushes up prices for construction materials
In a space of one year, construction materials have registered a high increase in their prices, the most affected being iron sheets and iron bars.
According to the Uganda Bureau of Statistics (UBOS), this has resulted from the scarcity in scrap material caused by the high international demand.
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Last month, Ugandans especially in the construction sector cried foul when the prices of cement escalated to the tune of Shs 50,000 per bag.
While many cried about this increment, what they did not know is that among the construction inputs cement increased by only 0.54 percent compared to other inputs.
The report released by UBOS, roofing sheets and iron and steel increased rapidly by 5.06 percent and 4.56 percent respectively
The increase is attributed to the demand of scrap on the international market.
In Kampala a kilo of scrap ranges between Shs 1,000 and 1,200 shillings from around Shs 500 in December.
Diesel also increased by 3.06 percent due to the supply limitations from Mombasa. This had a knock off effect in the construction sector.
