Rod, cement sales fall sharply

The sales of rod and cement have dropped by around 50 per cent to 70 per cent in the last two weeks in Dhaka, and traders are blaming the trend on abnormal price hike of these key construction materials.

Retailers added that the drop in sales has put them in serious trouble, as it had an adverse impact on their ability to afford rent and other expenses.

The price of top brand rods rose to Tk 98,000 per tonne, while the price of a 50-kg sack of cement increased to around Tk 650 in the last week owing to soaring USD rates, fuel price hikes, the impact of load-shedding on the manufacturing process, and supply chain disruption.

Saiful Islam, manager at KSD Trading and Company in Badda, said, “Our sales dropped by 70 per cent in the last 10 days due to abnormal price hikes of construction materials. We are concerned whether we will be able to pay shop and house rents this month.

“Sudden price hikes discourages customers from buying, and they instead wait for the rate to go down to put less pressure on their budget.”

Saiful was selling per tonne of BSRM rod at Tk 95,000 and AKS at Tk 93,000 on Tuesday. The non-brand rods are selling for around Tk 83,000 – Tk 85,000.

Hasan Munshi, proprietor of Munshi Steel Corporation in the city, said, “My sales have dropped by 50 per cent in the last two weeks due to a jump in rod and cement prices. The prices of both the key materials rose sharply this month, hitting record high in the country.

“We are selling Shah and Premier cements for Tk 530 – Tk 550 per 50 kg sack. But Holcim, Scan, and Crown are selling for over Tk 600 per sack.”

Echoing the same, English Road Iron & Steel Merchant Association’s General Secretary Imran Hossain said, “The downward trend in sales has put us under pressure.”

Speaking to The Business Post, Bangladesh Dokan Malik Samity (BDMS) President Md Helal Uddin said, “There are around 30,000-35,000 rod and cement shops in Dhaka area, and the figure is nearly 5 lakh across the country.

“Around 15 lakh employees work there. They will be in trouble if the sales of construction materials continue to drop. I am urging the government to put a stop in the practice of hiking product prices, and take strict action against syndicates that create instability in markets.”

He added, “The authorities concerned are not putting a sincere effort into regulating the market. As a result, the different product markets are suffering instability from time to time. The government should further strengthen monitoring in markets for better regulation.”

Real Estate and Housing Association of Bangladesh’s Vice-President Kamal Mahmud said, “Rod and cement manufacturers have taken everyone hostage, and increased the prices of key construction materials.

“Many of our many member firms have been forced to slow their project activities. Some even halted projects entirely due to the abnormal increase in construction material prices. So, both the realtors and the public are in trouble now.”

Claiming that a syndicate is hiking prices, Kamal said, “The government should take necessary measures against this syndicate. We initially had set a goal to deliver 10,000 flats this year, but now it is impossible due to the high prices.

“A stronger regulatory body is needed to set and regulate construction material prices.”