Home ›› 03 Feb 2023 ›› Front
The price of mild steel rods of different brands, a key construction material, has increased by Tk 5,000-Tk 6,000 per tonne in a week as the government raised the bulk electricity tariff by 8 per cent and the retail tariff by 5 per cent.
Construction material traders in Dhaka, Narayanganj, Shariatpur, Madaripur, and Feni on Thursday told The Business Post that the price of a highly popular brand rod was selling at Tk 98,000-Tk 99,000 per tonne on the day which was Tk 93,000-Tk 94,000 a week ago in the retail market.
Besides, rods of less popular brands was selling on Thursday between Tk 93,000 and Tk 96,000 which was Tk 5,000-Tk 6,000 lesser in the past week, said the traders.
Despite the increase in price across the country, per tonne rod was sold in Dhaka and Chattogram at Tk 1,000-Tk 1500 lesser than in other areas.
“Now we are selling BSRM rod, which is highly popular, at Tk 99,000 per tonne. It was Tk 93,000-Tk 94,000 in the last week. Besides, AKS rod is being sold at Tk 97,000, Bandar at Tk 96,000 and CSRM at Tk 94,000 per tonne,” said Kalachan Hawlader, proprietor of Hawlader Enterprise in Madaripur.
“We have nothing to do. Companies have increased the rate after gas and electricity tariffs shot up. So, we have to sell at high prices. The dealers told us that the price may hit up to Tk 1 lakh soon,” added Kalachan.
He said that the price of cement is yet to increase in the retail market. A 50kg-sack cement is being sold Tk 550-Tk 580 now. “The price is likely to reach Tk 600 soon,” he said.
Imam Hossain, proprietor of Akik & Sifat Steel Corporation in Old Dhaka, said he was selling BSRM rods at Tk 98,000, AKS rods at Tk 97,000 and Bandar rods at Tk 96,000 per tonne. “Retail prices rose by several thousand takas compared to the past week as manufacturers have increased prices,” he said.
Talking to The Business Post, Shafiqul Islam, a resident of Shariatpur, said he is very upset to see the abnormal price of the rod. “I purchased per tonne of BSRM brand rod at Tk 93,500 in the last week which is now Tk 99,000. There is no monitoring and the traders increase prices at their whims,” he added.
He lamented that the traders were selling rods from their stock immediately after the manufacturers increased the price to make profit.
Md Shaheen, a resident of Feni said he purchased two tonnes of rod at Tk 98,000 on Thursday from Anwara Traders.
Despite the sharp increase in price in the market, the state-run Trading Corporation of Bangladesh (TCB) on Thursday showed that the 60-grade rod price increased 1.40 per cent from Tk 93,000 to Tk 95,500 in a week while the 40-grade rod price went up 2.69 per cent from Tk 85,500 to Tk 87,000 in the same period.
Sheikh Masadul Alam Masud, founding chairman of the Bangladesh Steel Manufacturers Association (BSMA), said if the electricity bill increases by Tk 2,000, the production cost will go up by Tk 5,000.
“The price hike of rod followed the increase of the price of raw materials in the international market, and our gas price hike. Now, the government increased the price of electricity. So, the price of rod shot up,” said Masud, also managing director of Shahriar Steel Rerolling Mills (SSRM).
