Posted on 05 Mar 2008
Chang Chi-te, head of the department, made the appeal along
with several subcontractors in the face of out-of-control rebar prices, which
have risen to as much as NT$30,000 a ton, threatening the on-time completion of
the new MRT lines.
"There is a tremendous price increase in raw materials
produced in the BRIC nations, namely Brazil, Russia, India and China, resulting
in a subsequent price hike in various steel products," Chang said.
He recalled when construction of the Neihu Line began in
2001, the average price of rebars was only NT$6,500 a ton, about a fifth of the
price today.
Among the subcontractors accompanying Chang was Lien
Wei-chen, vice CEO of Evergreen Construction Corp., which is in charge of
certain sections of the Songshan Line.
According to him, the NT$9.8 billion budget for the Songshan
Line is now NT$5 billion short, due to a surge in rebars and other raw
materials. Of the NT$5 billion shortfall, NT$3 billion comes from the 590A
Section that his company is in charge of, he said.
He said when the company first began constructing the line,
rebar price was NT$15,000 a ton, about half of the price now.
Meanwhile, other materials, such as concrete and copper,
have also become more expensive, he said.
Responding to rumors that contractors of the Neihu Line will
go on strike due to a lack of funding, Lien stopped short at saying whether his
company will do so.
"We had three steel suppliers, but one of them has
gotten out due to the high prices," Lien said. "We only hope that the
government will do something for us."
Transit department head Chang, in the meantime, is calling
on China Steel Corp.,
"We're also calling on related operators to refrain
from hoarding materials and profit from it," Chang said.
The Ministry of Economic Affairs in February announced to
suspend exports of rebars and steel billets for three months to increase local
supplies and curb prices. The ministry also ordered that exports of other steel
products be strictly supervised to ensure steady local supply.
