Pandemic fuelled ‘abnormal’ iron price rise, says Saudi metal shelves maker
Iron prices have risen by an “insane” 120 percent because of the pandemic-fuelled e-commerce boom, the boss of a metal shelves company has told Al Arabiya.
Ahmed Alansi, general manager of Saudi company Rfufco, said the cost of the raw material has increased dramatically as companies expand their delivery arms and need more storage facilities.
He explained that his company’s sales rose by nearly 50 percent last year due to increased demand, but he has had to deal with costs shooting up.
Mr Alansi said: “The rise in iron prices is insane, the rise is irrational and abnormal, and the first time in almost 10 years, this rise is about 100 percent, and in some varieties the rise is 120 percent.”
The rise in price was attributed to high demand and low supply, as well as a global shortage of labor due to pandemic-enforced closures.
Source: Arab News