Shortage of supply ignites prices.. Cement crisis disrupts projects in Lebanon | economy

aljazeera.net
4 Min Read


The Lebanese market is facing an escalating crisis in securing cement, one of the basic pillars of the construction sector, after the shortage of available quantities led to a slowdown in construction work, an increase in prices, and the emergence of a parallel market that companies and contractors resort to to secure their needs, at a time when workers in the sector are facing daily difficulties to complete their projects.

The problem is no longer limited to high prices only, but also extends to the difficulty of obtaining the material itself, as construction contractors complain about the decline in available quantities compared to what was previously the case, which imposed on them new mechanisms for obtaining limited quantities and at distant intervals.

Construction and residential projects contractor Alaa Al-Ghosh told Al Jazeera that securing cement was previously done normally and without major obstacles, but the situation has changed during the recent period, as contractors have become forced to reserve limited numbers of bags and wait longer periods to obtain them.

Al-Ghosh adds that this shortage was directly reflected in prices, as the price of a bag of cement rose from about $5 to $7.5, while its price on the black market reached about $15, indicating that this material is indispensable because it is involved in the various stages of construction, from the foundations to the final stages of projects.

Al-Ghosh warns that the continued supply crisis threatens the completion dates of residential projects, as contractors are forced to postpone the work phases, which leads to delaying the delivery of apartments and raising operational burdens on companies and investors in the sector.

High prices

For his part, construction materials transport contractor Khader Al-Daqduqi explained to Al Jazeera that workers in the sector are experiencing daily pressure due to the difficulty of securing their cement needs, pointing out that business owners are now searching for available quantities from multiple sources, even if they are limited, to avoid projects stopping completely.

Al-Daqduqi points out that the normal price of a bag of cement is supposed to remain around $5.5, but the decrease in supply and the disruption of distribution mechanisms contributed to pushing prices to higher levels, which increased the burden on the construction sector, which is already suffering from multiple economic challenges.

As for construction worker Wissam Al-Abbas, he conveys an aspect of the impact of the crisis on workers, stressing to Al Jazeera that the cement shortage led to the cessation of his work during the recent period, after he had to wait a full week to obtain the required quantity, before he resorted to buying some bags from the black market at a price of $15 per bag.

Al-Abbas adds that a large number of workers go to construction sites every day, but they do not do any work due to the absence of basic materials, which directly affects their daily income and the stability of their work.

Between the rise in prices, the decline in quantities, and the disruption of projects, the cement crisis in Lebanon reveals new pressures affecting the entire construction sector, as securing a basic material such as cement has become a challenge that threatens the business cycle, raises the cost of projects, and increases the burdens of contractors, workers, and citizens coming to construction.



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