After the record increase in the price of rod, it has come down from Rs 1.5 to Rs 2,000 per tonne again. But even the good news of price correction is not giving relief to the construction materials market. Because, still the price of rod is 16 thousand rupees per ton more than this time of last year.
The price of stone, another construction material like rod, has also been slightly modified. Now every bag of cement is getting 10-15 rupees less than before. Even then, the price of cement is much higher than a year ago. Similarly, the prices of all construction materials are now higher than during this period last year. The market price calculation shows that despite the price revision, the three main construction materials rod, cement and stone are now being sold at 24 per cent higher prices than a year ago. The price of bricks has also increased by 20 percent.
All the main raw materials for making construction materials are imported. You have to import old pieces of iron or old ships for rods, clinker for cement, and coal for burning raw bricks. The market for these raw materials is booming worldwide. On top of this the ship fare has increased a lot. Combined, the cost of production has increased in the country. So the producers are raising the extra cost by increasing the price.
Mohammad Sarwar Alam, director of Mostafa Hakim Group, which produces rods, cement and bricks in the country in an automated manner, told Prothom Alo that the price of construction materials here determines the price of raw materials in the world market. For example, in the world market, the price of rod has decreased by 20-25 dollars per ton of raw material and the price of rod has also come down in the country. If prices do not fall in the world market, there is no possibility of reduction in the country. Products are sold in the market according to the cost of production.
Highlighting the rise in raw material prices compared to a year ago, the entrepreneur said the price of a piece of old iron has risen from 310 to 525, coal from 80 to – 140-150 and clinker from 42 to 75. In addition to the price in the world market, the exchange rate of the dollar is now two to three rupees higher than a few months ago. This has created instability in the construction sector market.
Corona reduces the production of raw materials or finished products in the global construction sector. At that time there was no balance between supply and demand. But when economic activity resumed late last year after the Corona epidemic, there was a huge demand for raw materials in the country. As a result, the prices of raw materials in the world market go up. As a result, prices of construction materials continue to rise in the country’s market. Even after some corrections, it is still higher than last year.
Rods are the most expensive to build a building or infrastructure. In the Chittagong market, rod is now being sold at 75 to 8,500 rupees per ton. In Dhaka, the price is more than one and a half to two thousand rupees. However, the price of cement has increased by Rs 40-50 per bag or Rs 800-1000 per tonne in the middle of this year. Now, however, it has come down to Rs 10-15 per bag. The price of stone had gone up by more than Rs 700 per tonne a few months ago due to incr