CHATTOGRAM: Prices of many key construction materials have nearly doubled in the span of only a year.
Traders as well as contractors and realtors said pace of development work, including that of big, small and medium projects, are losing steam as prices of rod, cement and sand have substantially gone up in the last one year.
They also attributed high labour charge and exorbitant transport cost to the dwindling pace of current construction or development work.
Talking with the FE in the port city recently, Asadujjaman Titu, General Secretary of Chattogram Contractors Association (CCA) said, construction work at both public and private levels have shown a downward trend in 2021.
He said many contractors were forced to temporarily suspend or completely stop construction work due to fund shortage amid an abnormal rise in prices of construction materials in last year.
"Contractors cannot continue the construction work as, unfortunately, prices of all construction materials have been hiked now," he said.
There are more than 3,000 contractors who are engaged with construction work in Chattogram, he noted.
Most of the contractors are working at Roads and Highways Department (RHD), Chattogram City Corporation (CCC), Chittagong Port Authority (CPA), Chattogram Development Authority (CDA) and other government agencies, he stated.
Many contractors are also involved with construction work at private establishments, including big and small ones, he said, adding: "A huge development work is continuing in Chattogram now. But rising prices of construction materials is hampering construction work."
He said construction work at medium, small or individual levels have also decreased in one year and prices of materials, including key ones, have gone up beyond the reach of common people within the period.
"Prices have doubled within the span of one year. As a result, both government's development projects and private construction works are facing crisis in the key time of construction period of the current dry season now," he mentioned.
Sources at steel manufacturing sector said, prices of standard grade MS rod increased by Tk 34,000-32,000 per tonne in the last one year.
The standard grade rod was selling at Tk 84,000 a tonne in January this year at local market in Chattogram which was Tk 50,000-52,000 a tonne in the first month of last year, they stated.
Importers said prices of scrap iron, one of the key raw materials for manufacturing MS Rods, have increased by 200 US dollar per tonne in the international market.
The rate of scrap iron in the international market was $300 per tonne in March last year which was selling at $500 a tonne in January this year, they said.
"So, prices of MS rod, one of the main materials for construction sector have increased by Tk 33,000 per tone," both importers and steel manufacturers said.
Same is the case with cement. Cement manufacturers, traders and importers told this correspondent that prices of cement rose in the local market in 2021. A bag containing 50 kg cement is now selling at Tk 460 which was Tk 360 early last year, they noted.
Besides, price of sand has also been hiked along with other materials, said building contractors and sand trader of the city. The rates of bricks have also witnessed two-fold rise in the period. One thousand bricks are now selling at Tk 10,000 which was Tk 5,000-6,000 early last year, traders and contractors said.
Mohammed Najrul Islam, a trader and owner of Najrul Trading at No 2 Gate Sholoshohor, said, "The companies that make cement have increasing prices of rods. So, we have to hike the price."
Mohammed Khair Uddin, owner of Khair and Brothers of Assadganj, said, "Due to the price hike of rod and other construction materials, the business is dull now. Many contractors stopped their construction for the price hike of rods and other construction materials."
Besides, prices of electric materials have increased by around 35 per cent within one year. Price of sanitary and hardware items significantly increased in 2021. Exorbitant prices of those items have also aided slowing down the construction work. On the other, labour charges have doubled in the last 12 months.
