Home ›› 24 Jul 2022 ›› Back
The prices of rod and cement – which are key construction materials – have dropped slightly compared to June due to slow trade and construction activities across the country during Eid holidays.
Industry insiders and traders however said the dip in prices will be short-lived if load shedding continues in the coming days, as scheduled power cuts disrupt the construction material manufacturing process, raise production costs and choke supply in the market.
Traders throughout the capital on Wednesday were selling rods manufactured by different brands for around Tk 80,000 – Tk 89,000 per tonne.
Among popular brands, the Bangladesh Steel Re-rolling Mills (BSRM) rods were being sold for Tk 88,000 – Tk 89,000 per tonne, a drop from Tk 90,000 – Tk 92,000 a month ago. Besides, each tonne of Abul Khair Steel (AKS) rods were being sold for Tk 87,000 – Tk 88,000.
Traders were selling rods of Rahim Steel at Tk 86,000, Metro Ispat at Tk 85,000, and Bandar Steel Industries Ltd at Tk 81,000.
According to July 20 data from the state-run Trading Corporation of Bangladesh (TCB), the price of 60-grade rod dropped by 0.74 per cent, compared to Tk 83,000 – Tk 86,500 per tonne a month ago.
Meanwhile, the price of the 40-grade variant dropped by 2.16 per cent from Tk 77,000 – Tk 85,000 in Dhaka during the same period.
Traders in Dhaka on Wednesday were selling a 50-kg sack of cement from different brands for around Tk 450 to Tk 530. Among the popular brands, a sack of Holcim cement was being sold for Tk 520 – Tk 530, which was Tk 540 – Tk 550 a month ago.
Besides, a sack of Scan cement was being sold for Tk 520, SuperCrete cement at Tk490, Shah Cement at Tk 485, and Metrocem at Tk 480.
Proprietor of Mamun Trading Corporation, located in the capital’s East Rampura area, Kamruzzaman Mamun said, “The price of per sack cement has dropped by Tk 20 – Tk 30 compared to the previous month.
“Market prices depend on manufacturers. If they increase their rates, we have to do it as well.”
Alauddin Trading Corporation’s owner Haji Alauddin said, “Rod prices have dropped by Tk 2,000 – Tk 3,000 compared to last month. The prices of rods from different brands may rise again in the coming days due to the high USD rates.
Speaking to The Business Post, Bangladesh Steel Manufacturers Association (BSMA) General Secretary Md Shahidullah said, “The prices dropped this month due to the Eid holidays. During this period, people usually halt constructions, so the demand for such materials falls.
“So, we are currently selling construction materials at a loss.”
He added, “However, the prices of both rod and cement will go up again if the government continues to impose scheduled load shedding in the manufacturing industry. We lose around six hours of production time during a two-hour power cut in a steel factory.
“So, the government should keep this industry out of the purview of scheduled load shedding considering that the construction of several mega projects are going on across the country.”
Speaking about other challenges, the BSMA general secretary said, “We are facing an immense problem due to an increase in container fare, raw material prices, and USD rate. Along with the Covid-19 crisis, the Ukraine-Russia war created another big impact in the entire global trade.
“Like many other industries, the rod and cement sectors in Bangladesh have also fallen victim to the supply chain disruption.”
Shahidullah, also the managing director of Metrocem Group, stated that their production may drop by 20 per cent – 30 per cent due to the load shedding.
He then said, “We are in trouble for the last one year due to the gas shortage. The current electricity problem will deepen the crisis we are already in.
“The prices of raw materials for manufacturing rods increased $280-$300 to $580-$600 in one and half years. And the price of chemicals went up to $1400 from $700-$800 during the same period. Besides, the scarcity of raw materials is creating a challenge for manufacturers.”
Real Estate & Housing Association of Bangladesh’s (REHAB) Vice President Kamal Mahmud said, “The prices of rod dropping by Tk 2,000 – Tk 3,000 and cement by Tk 20 – Tk 30 will not have a big impact in sector, as the prices of other materials such as tiles and paints are still high.
“If construction material prices go up due to load shedding, flat prices will increase as well. Basically, the whole construction industry will be impacted.”
