SANTO DOMINGO.- Rebar makers have declared a “price war" in the last few days which has plunged prices as much as 28 % in the last weeks, and is expected help invigorate the construction industry.

The price of cement has also been falling by more than RD$10 a bag in the last days, according to hardware suppliers and builders.

They said from RD$1,850 the quintal two weeks ago, rebar now goes for RD$1,450, or RD$400 less, a 27.5% fall.

In the last few months rebar imports has led to fierce competition between importers and local makers, as a bundle went for RD$60,000 two months ago, today is less than RD$30,000.

Promoters and Builders Association (Acoprovi) founder Jose Rodriguez Cáceres said another reason rebar prices have fallen in the local market is that global consumption is lower, in addition to some imports. He said local consumption has fallen by more than 50%.

Hardware dealers say a ton of normal rebar cost RD$60,000 six months ago, then fell to RD$50,000 and even to RD$39,000 and note it’s something normal in the market, as the result of adjustments to the international market.

However the import of 8,000 tons by independent importers and a company immediately led to falling prices locally, and the fierce competition.

Large suppliers sell rebar to builders at RD$26,000 per ton with a RD$500 discount if they pay in cash, so rebar costs 110% less than six months ago.