Prices of construction materials rising

Market sources attributed the rise to increase of the prices of raw materials in the international market. But consumers have asked for better market monitoring by the government to make sure they needed not to pay extra.

Prices of cement, brick and rod marked rise in varied ranges thereby, putting pressures on the consumers, reports UNB.

Visiting several markets, UNB correspondent found that the price of per sack (50 kg) of cement of most brands has increased by Tk. 20.

Talking to several retail cement traders in different areas of Dhaka on Monday, this correspondent found that each bag of Crown Cement was being sold at Tk. 420, Fresh Cement at Tk. 410, Ruby Cement at Tk. 415, Akij Cement at Tk. 425, Shah Cement (special) at Tk. 400, Premier Cement at Tk. 380, Holcim Cement at Tk. 430, Scan Cement at Tk. 430, and SuperCrete Cement at Tk. 400.

Last week the prices of these 50kg packs were lesser by at least Tk. 20 than this week's prices, they said.

In district level markets, Shah Cement (OPC) was sold on Monday at Tk. 425 to Tk. 440, Shah Cement (Special) at the range of Tk. 415-435, Seven Ring, Bashundhara Cement and SuperCrete Cement at Tk. 435 per pack, Scan Cement at Tk. 420, Holcim Cement at Tk. 440, Amansim (Advance) at Tk. 435, Crown Cement at Tk. 420 to Tk. 440, Fresh Cement, Mir Cement, Anwar Cement and Tiger Cement at Tk. 400 to Tk. 420, Akij Cement at Tk. 440, Premier Cement at Tk. 420 to Tk. 440 and Seven Horse Cement at Tk. 380 per bag.

Bangladesh Cement Manufactures Association Vice-president and Metrocem Cement Managing Director Md Shahidullah told UNB that cost of raw materials per sack (50kg) was increased by Tk. 80 in the production level.

As per international market, clinker price has increased from USD 40 to 50 per ton, slide price from USD 18 to 29, gypsum from USD 24 to 28, fly ash from USD 21 to 26, limestone from USD 18 to 28 and also the value of Dollar got increased from Tk. 80 to Tk. 84.

Besides, cost of international freight forwarding was increased by 20 percent while local freight was increased by Tk. 20 to Tk. 25 per bag.

Giving the whole range of price escalations Md Shahidullah reasoned that price per bag should have been increased by Tk. 80. "But as adequate supply is there in the market, we are not going to increase the price by Tk. 80 per bag," he added.

"Tk. 20 was increased just for cost minimisation. It might be increased up to Tk. 80 per bag," said the association leader.

Over a hundred cement factories - small and big - in the country together produce around four crore metric tons of cement a year against a demand of 2.4 crore MT.

Price of picks also has gone up. Price per thousand picks has marked a rise by Tk. 1000 to Tk. 1500 over the past one year.

Every thousands of No 1 picks are being sold from Tk. 8500 to Tk. 9000 at the brickfields. Last year, the price was in the band of Tk. 7000 to Tk. 8000.

Abu Bakar, general secretary of Bangladesh pick Manufacturing Owners' Association, said, "This is the peak time for production. The prices of coal and raw soil have been increased."

"So, it is not right to say that the manufacturers have increased the price. pick prices are increased due to rise in prices of all raw materials," he added.

In the rod market, 60-grade MS rod or better quality was being sold from Tk. 59000 to Tk. 61000 per ton. Just a month back, the price was ranging from Tk. 53000 to Tk. 54000.

Forty-grade MS rod is being sold for Tk. 50000 to Tk. 51000 per ton, which was earlier on sale for Tk. 48000 to Tk. 49000 a ton.

According to the analysis of Trading Corporation of Bangladesh (TCB), the price of 60-grade rod was increased by 17.66 percent while 40-grade by 23.64 percent compared to that of the last year.

Makhan Lal Das, owner of M/S Star & Co of Malibagh area in Dhaka, told UNB that overall business has experienced a downturn due to the high prices of rod. Usually, at the beginning of each year, rod manufacturers increase the price, he added.

"If the market is not stable, buyers buy less. However, there is no possibility of lowering of prices this year," he forecasted.

Founding president of Bangladesh Auto Rerolling Steel Mills Association and Managing Director of Shahriar Steel Mills, Sheikh Mashadul Alam Masud, told UNB, "The country's market has been affected due to the increase in the prices of electricity, dollar, fuel oil and cost of raw materials in the world market."

"However, the affect was less than what we thought," he also said. "But, if we calculate properly, the price should be increased to Tk. 10000 to Tk. 15000 per ton," he argued.

He also claimed that the interest rates of the banks have gone up.

"Though the government is trying to ping the interest rate to a tolerable level through a number of efforts, the bankers are taking it back to its earlier state. What the traders will do in this situation," he posed question.

Real Estate and Housing Association of Bangladesh (REHAB) and the Consumers Association of Bangladesh (CAB) expressed concern at such rise in construction materials and blamed the government's inactive market monitoring system for the price hike.

Consumers alleged that prices of different construction materials usually increased in the construction season (October-April/May) every year. They also said that syndicates increase prices of major construction materials as the government has no control over the market.

Asked about the increase of construction material price, REHAB First Vice-president Liaquat Ali Bhuiyan told UNB, "We have talked about the issue several times, but in vain. At this moment, I can't say anything as our president is out of the country."

CAB President Ghulam Rahman told UNB, "At present, the big question is who controls the market. It is normal that goods prices will be increased. But there have to be logical reasons behind such hike. But, it's not happening in Bangladesh."

The other issue is that, said Ghulam Rahman, the government does not reduce the import duties, which ultimately go against the consumers' interest.