The price of aluminum in the Kingdom has reached SR11,962 ($3,190) per ton ?an increase of 70 percent ?due to fluctuations in demand and supply, dealers said.
Khaled Al-Bilbeesi, director of marketing at the National Aluminum Manufacturing Company (NAMC), said the price of aluminum has hardly been affected by price fluctuations in the past 10 years.
"It is only during the last two years, specifically the past year, that prices have witnessed a remarkable rise of more than 70 percent taking the price of a ton to $3,190," he added.
Al-Bilbeesi attributed the increase to fluctuations in demand and supply, and speculations in the international markets. He added that the increase is not in the interest of companies and that the Saudi market is still in a better position than neighboring countries.
He added that prices had come down to $2,819 three months ago before rising to their current level. He, however, did not expect prices to reach $4,000 in any case.
According to Al-Bilbeesi, the increase has not affected demand, which continues to grow, especially in the summer. "The selling season starts at the beginning of the year, continues until August, comes down between Ramadan and Dhul Hijjah, but never reaches complete stagnation," he said.
He added that he does not believe aluminum would be replaced with other alternative substances such as PVC "because Saudis prefer aluminum."
Al-Bilbeesi said aluminum constituted between 8 to 10 percent of each construction project. He described the metal to be resistant to difficult weather conditions, lightweight, not affected by humidity or high heat, durable and long lasting. "It is being used widely in the fade of glass buildings in the Kingdom," he added.
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Aluminum prices up 70% in KSA
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Posted - 08/27/2008 : 03:39:15
