Home ›› 11 Apr 2022 ›› Back
Rod prices have fallen slightly in the capital’s retail markets after experiencing months of a consistent upward trend in the aftermath of a sudden spike in construction material prices in the global market.
Traders said prices of the basic construction material declined by Tk 500-4,000 per tonne this week compared to the last week.
Industry insiders say the rod prices in domestic markets recently shot up due to the lingering effects of the pandemic on top of the volatility in international markets caused by the Russia-Ukraine war, driving up costs of building houses and implementing infrastructure projects even.
According to the Trading Corporation of Bangladesh (TCB), as of April 10, the price of 60-grade MS rods is between Tk 84,000 and Tk 91,500 per tonne—a 1.96 per cent reduction from last week.
Meanwhile, the price of 40-grade MS rods was selling for between Tk 78,000 and Tk 89,500 per tonne—a 0.30 per cent reduction from the previous week’s price of between Tk 81,000 and Tk 87,000 per tonne, the data also showed.
However, spot visits to several markets in the capital revealed that rods of different grades were actually being sold for between Tk 83,000 and Tk 92,000 per tonne.
Proprietor of M/S Brothers and Brothers Mobarak Hossain said he was selling BSRM rods at Tk92,000 per tonne and AKS at Tk91,5000 on Sunday.
“The prices of rods have started to fall this week. Still, the price is higher compared to last month. We are purchasing rods at high prices from manufacturers, so we have to sell to consumers at a high price as well,” he added.
Owner of Sun Steel Corporation Nazrul Islam Sarder said he was selling Bandar steel rods for Tk85,500, down from Tk89,000 last week. “I’m selling them at a loss to keep my business afloat. This is how it works. Just as we make money from this business, we also lose money from time to time.”
He added that several rod companies like Bandar Steel Industries Ltd, Rani Re-Rolling Mills Ltd, Anwar Steel Mills Ltd, and ZSRM have lowered their pricing more than the key players like BSRM, AKS, and Rahim Steel, who only reduced their prices slightly.
Talking to The Business Post, Sumon Chowdhury, managing director of Rani Re-Rolling Mills Ltd, said that small millers are facing a difficult time due to rising raw material prices in the international market.
“To survive during this crisis, we lowered our product price by Tk 3,000-4,000 per ton because we have to pay electricity bills and employee salaries,” he added.
Contacted, BSRM Deputy Managing Director Tapan Sengupta said: “Because the price of raw materials is now high in the global market, we are unable to lower our product pricing.”
He said: “We didn’t even raise the price of our product this month. In Chattogram, the price of rods is currently Tk89,000 per tonne.”
Recommending a solution, Real Estate and Housing Association of Bangladesh (REHAB) Vice President Kamal Mahmud said: “There is a need for a regulating body who will fix market rates. Businesses can raise and lower building material prices at will because there is no such regulator. Suddenly up-down market creates an impact on our activities,”
“I am pleading with the commerce ministry to take action to regulate market prices. Before building material costs are increased or decreased, an authorised regulator should notify the public at least two weeks in advance,” he added.
Meanwhile, steel manufacturers blamed this on the price of melting scrap, the main raw material of rods, which has been on the rise in the domestic and international markets for several months.
Moreover, the ship freight fares, price of fuel, and transportation costs have increased in the global market, which led to an increase in transportation costs, said the manufacturers.
