Last year, the fluctuation of markets around the world due to the corona virus deeply shook the construction industry, like all other industries. Especially with the price hikes on the main materials of reinforced concrete, the industry has approached the blockage point. This main item made itself felt in iron, which is one of the building materials. Iron prices doubled last year.
When we examine the current iron prices, iron prices, which test $750 in dollar terms with the effect of rising commodity prices, continue to maintain their strength. LME steel futures prices continue to hover around $730/760, while scrap prices continue to trade at $490/510. Iron prices are expected to remain above the level of 680 dollars in dollar terms, with the effect of increasing metal prices and the effect of international prices, which continue to rise especially from China. For iron prices, which we expect to remain above the $680 level in the short term, the influence of China will be decisive for the future. Along with all these events, the rapid rise in iron prices due to the increase in global demand has a negative impact on the construction sector in particular. Iron ore, which has increased by 116 percent in the last year, has surpassed the 43 percent increase in gold. Emphasizing that the reflection of the cost on the housing is inevitable, the representatives of the construction sector asked for an inspection for the prices.
The rise in the exchange rate adversely affected the construction industry. Iron prices, which have risen by 116 percent in the last year, make sector representatives think brooding. Increasing global demand, especially in China, caused iron ore prices to climb. Increasing global demand, especially in China, caused iron ore prices to climb. The increase in iron ore prices exceeded the increase in gold prices, which rose 43 percent in 1 year. Especially real estate companies working with the public are having a hard time due to the price increase.