The index for the cost of building materials in April rose in line with the rise in steel prices

KUALA LUMPUR: Building Material Cost Index (BCI) without steel bars and with steel bars increased for all building categories between 0.1 and 3.6% in April 2022 with Peninsular Malaysia between 0.6 and 3.4%, Sabah between 0.1 and 2.4%. and Sarawak between 0.8 and 3.6%, the Department of Statistics Malaysia (DoSM) said.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the BCI without steel bars for all parts of Peninsular Malaysia increased between 0.9 and 3.4 per cent for almost all building categories.

“The building category with the greatest increase was the two to four storey reinforced concrete (RC) building (flat roof) in Terengganu and Kelantan.

“The BCI without steel bars in Sabah and Sarawak increased between 0.3 and 3.6% for almost all building categories,” it said in a statement in conjunction with the April 2022 report. of the department on construction and structural works published today.

Mohd Uzir said the construction categories with the biggest increase in Sabah and Sarawak were single-storey steel frame (tower only) in Kota Kinabalu and timber construction in Kuching.

The BCI with steel bars for all regions of Peninsular Malaysia, Sabah and Sarawak increased between 0.1 and 3.6% for almost all building categories.

The building categories that saw the greatest increase in Peninsular Malaysia were RC buildings with two to four storeys (flat roof) and RC buildings with five or more storeys (for offices) in Penang, Kedah, Perlis, Terengganu and Kelantan with 3.1%. Kota Kinabalu with 2.4% for single steel structure (tower only) and timber construction in Kuching with 3.6%.

Mohd Uzir said the steel unit price index, which consists of mild steel round bars and mycon 60 high-strength deformed bars, rose 2.3 percent from 1.4 percent in the previous month.

“The highest increase in steel was recorded in Sarawak (3.8%), followed by Kelantan, Terengganu and Pahang with 2.4%.

“Almost all construction materials such as cement, steel, aggregates, sand, bricks and wall, roofing materials and ceiling materials increased in April,” he said.

Mohd Uzir noted that the World Steel Association report showed global crude steel production for 64 countries at 161.0 million tonnes in March 2022, down 5.8% from to March 2021.

Global crude steel production was 456.6 million tonnes in the first three months of 2022, down 6.8% from the same period in 2021.

Asia and Oceania produced 331.3 million tonnes of crude steel in the first quarter of 2022, down 7.8% from the first quarter of 2021.

At the same time, according to a World Bank report, most commodity prices are expected to increase in 2022 and remain high in the medium term, especially for commodities for which Russia and Ukraine are the main exporters, notably energy and certain cereals.

Commodity prices rose sharply after the start of the war in Ukraine, adding to the broader post-COVID-19 recovery.

Rising energy prices will drive up the costs of mining and refining metal ores, especially aluminum, iron ore and steel. – Bernama

Darcy W. Kerr