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The soaring price of steel: More than half of the construction sites have delayed the construction progress, and 30% of the construction sites have stopped purchasing steel!

Time : 2021-05-06 Hits : 70

How big is the impact of the surge in steel prices on the domestic construction industry? Centennial Construction Network surveyed 460 construction units across the country.

Among them, 56% of the construction units stated that the continuous and substantial increase in steel prices has affected the current construction progress to varying degrees. In view of this situation, construction units often choose to delay the construction progress of some projects or stop construction to reasonably control costs.

According to a construction company in Jiangsu, the recent increase in the price of building materials, especially steel, has a huge impact on our construction company. The current raw material procurement plan is temporarily delayed for about one month for observation. It is impossible to grasp the price trend of later materials in a short period of time, so the construction will be carried out first. The progress slows down and losses are reduced.

   After the price of steel has risen sharply, and the purchase cost has risen sharply, the construction progress will be slowed down to reasonably control the cost.

   Among them, about 30% said that the construction site has suspended the procurement of steel, and the specific procurement plan should be determined according to the trend behind the price of steel. According to a feedback from a construction company in Chongqing: Due to the high price of steel, the cost has risen sharply. At present, the main construction sites have been suspended. When the price of steel falls behind, construction will be resumed.

In addition, 44% of the construction units stated that the current construction progress is normal, but they all expressed influence on the plan to purchase steel. At present, the main focus is on the consumption of the original inventory. The priority is to purchase steel based on the actual progress of the project, and no additional steel will be purchased. .

   A construction company in Hefei said: The recent increase in steel prices has little effect on the construction period. The construction is still under normal operation, but the construction cost has increased significantly. The purchase of steel has been temporarily stopped, mainly consuming inventory, but the inventory is limited, and it will not last long. If steel prices remain high in the future, the construction period may be extended.

A construction company in Henan said: The current continuous increase in steel prices has no effect on the progress of our project. Our projects are under normal construction. The main reason is that we have made reasonable price adjustments with the owners and suppliers. The increase in steel prices mainly increases our financial pressure. There is no obvious impact on the progress for the time being, but the steel will be purchased according to the actual progress of the project, and no additional steel will be purchased.

The projects of these construction companies are mainly based on people's livelihood, municipal and other projects, or the project is close to the end, the construction period is relatively high, and the project progress cannot be delayed due to the price of materials. Although the construction progress has little impact, due to the substantial increase in steel prices, the construction unit's funds have increased greatly.

In terms of ensuring construction progress, construction companies have adopted the following measures

Normal construction, stop purchasing, mainly consume inventory.

Negotiate timely and reasonable price adjustments with the owner and material suppliers.

The actual amount required for the progress of major procurement projects.

 

From the survey of construction units, the current continuous increase in steel prices has already had a certain impact on more than 50% of domestic construction units. If steel prices continue to maintain an upward trend or continue to stay at a high level, after the steel inventory of some construction projects is exhausted, The proportion of the construction unit affected as a whole may continue to increase.


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