Price of steel rods up Tk2,000 per tonne in two weeks
Persistently rising, the price of the construction material has shot up Tk27,000 in the last one year
The price of mild steel rods (MS rod), a key construction material, has increased Tk2,000 per tonne in just two weeks, thanks to the persistent high prices of raw materials globally.
Entrepreneurs in the industry said the price of rods has gone up due to the higher prices of scrap metal and billet, the raw materials for making rods, in local and global markets.
However, traders say that raw materials imported earlier are now being used in MS rod production as the raw material imported at higher prices has not reached yet. So, it is irrational to hike prices at this time.
The price of rods has increased by Tk2,000 in the last two weeks. With a constant rise, the price of the construction material has shot up Tk27,000 in the last one year, Ispat sector insiders say.
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According to wholesalers of MS rods, at present, the price of 75-grade rods of different brands went up to Tk75,000-Tk79,000 per tonne in the market, which was Tk73,000-Tk77,000 two weeks ago. The popular 60-grade rod was selling for Tk69,000 per tonne in Chattogram markets on Tuesday, but its price two weeks ago was Tk66,000.
Mohammad Liakat Ali, owner of M/s Ajmer Trading in Chattogram's Azadganj, said "It is illogical to raise the price of rods at this time because the raw material the industry owners purchased at higher prices from the global market has not reached yet."
The price hike of rods in the local market is much higher than the increased price of raw material globally, traders allege.
However, factory owners said the price of rod-making raw materials, scrap metal and billet, has increased by Tk20,000-Tk25,000per tonne in both domestic and international markets in the last one year. As a result, they are being forced to sell rods at higher prices due to increased production costs.
The price of billets, plates and scrap metal, the raw materials for making rods, has also gone up abnormally.
At present, a tonne of scrap costs Tk56,000, plates cost Tk61,000, and billets are Tk67,000 a tonne. Two weeks ago, scrap was Tk54,000, plates were Tk60,000, and billets, Tk66,000.
Abidur Rahman, manager (sales) of Chattogram's KR Steel, said, "The price of scrap has shot up by $50 per tonne in the last one month. It is now selling for more than $600 per tonne, globally. The rod-making material costs Tk55,000 per tonne in local markets."
"We set the price of rods after including the import price of raw materials, and transport and production costs. We are making a nominal profit," he added.
Sarwar Alam, director of Golden Ispat, said the raw material of the country's steel industry is 100% dependent on imports. Around 75% of billets are imported directly and the remaining 25% comes from the ship-breaking sector. The price of rod-producing raw materials is increasing continuously in both domestic and international markets.
