Gaza: Prices drop following reports of relief
Plan to ease restrictions on Palestinian population leads to slew of reports on renewed supply of cement to Strip. Tunnel operators who have been earning a pretty penny since siege began are now forced to deal with price reduction
Ever since reports on a series of possible relief steps began emerging, the Strip has been abuzz with rumors suggesting cement supplies will be renewed.
Gaza's residents seem centain that Israel will lift the embargo imposed on allowing construction materials into the Strip. According to assessments, the renewed introduction of cement will lead to a dramatic drop in its price.
Abdelfatah al-Zurei, manager of the investment department at the Strip's economy ministry, said that the reports have caused cement prices to drop by nearly 50%.
Smugglers manage to bring cement into Gaza through the tunnels, and it is prices at about NIS 3,500 (about $880) per ton. Now the price has dropped to NIS 1,800 ($452). Al-Zurei said he expects cement prices to return to their levels before the blockade – about NIS 600 ($150).
Nabil al-Zaim, CEO of the Palestinian Commercial Services Company, which imports cement from Israel, noted that the product's price was six times higher during the siege. He said that talks were being held with the Nesher Company to resume the supply of cement to the Strip, but that the deal was still pending an Israeli government approval.
Thousands of houses were destroyed during the IDF's last operation in the Gaza Strip, whether by air raids or by bulldozers on the ground.
At least $4 billion were raised by the international community for the reconstruction of Gaza following Operation Cast Lead. The aid funds have yet to be used do the fact that the crossings to the Strip remain closed and the disagreements over who should be in charge of the money – Hamas or the Palestinian Authority.
