Master Builders, a business formation group representing over 4 000 companies in the construction industry, has reported soaring steel prices and persistent shortages as a result of the shutdown.

ArcelorMittal recently announced its plans to cease long steel operations in Newcastle and Vereeniging, a move that is expected to result in 3 500 job losses. The closure has left the construction industry in a difficult position, with fewer companies available to meet the high steel demand.

Sam Ngcongo, President of Master Builders, explained the situation, "With ArcelorMittal sort of disappearing from the country, that means there are still a few companies that are there in the country. They have already started pushing up prices very, very high because now the demand is becoming so big for them. Previously there was ArcelorMittal, and now these demands are coming to them, so they are pushing the prices up."

Ngcongo further highlighted the challenges faced by the construction sector, noting that the time for supply has become significantly longer, leading to delays in construction work. "The length of time for deliveries means that the construction work is also affected by delays," he added.

--SABC/ChannelAfrica--