Increase in prices of quarry products shocks contractors

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KUCHING: The building and civil engineering contractors in Kuching and Samarahan divisions are ‘in shock’ over the inflated new prices for quarry products which took effect since Jan1.In comparison to the old prices, the prices of 10mm chipping, 20mm aggregate and crusher run stones have increased by 24 per cent and 34 per cent.

Kuching-Samarahan Division Building and Civil Engineering Contractors Association, which represents more than 100 member companies, fears the price escalation will trigger an increase in the prices of other building materials.

If not tackled properly, this could jeopardise the implementation of government projects, the association said in a statement issued here yesterday.

As such, the contractors hoped the government would introduce a Fair Trade Practices Act to control unethical business practices and ensure a healthy construction environment.

“This Act will allow the government to act against those involved in profiteering, monopolistic business and cartels, and those players conspiring to determine prices which can cause disturbance especially when it comes to building material prices,” association  chairman Tan Jit Kee said in a signed   statement.

The statement added that the need for price stability and reliable supply of building materials to the construction sector could not be underemphasised.

“For example, ready mix concrete, concrete piles and premix need stones as the essential raw materials in the production.

“The high building material costs are likely to hurt the implementation of the government’s economic stimulus projects,” it said.

The statement was released in response to the increased prices of quarry products as announced recently by Sarawak Quarries Association.

The 10mm chipping stone is now RM32 per metric tonne (MT), an increase of 34.1 per cent from the previous price of RM23.80 per MT.

The price of 20mm aggregate increased by 24.1 per cent from RM29 per MT to RM36 per MT, while crusher run stones are now priced at RM26 per MT which is an increase of 28.7 per cent from the old price of RM20.20 per MT.

According to the statement again, the 20mm aggregate and crusher run stones are now in short supply despite the steep increase in prices.

“Lorries are queuing at quarry sites waiting for their turn to take delivery of quarry products from production lines to the construction sites.

“We hope the quarry operators will increase their daily production of aggregates and down crusher run to ensure supply can meet the demand of the industry,” it said.