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Building materials' prices budge, bricks defiant

| Updated: July 31, 2018 13:25:14


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The prices of key construction materials like steel rod and cement have receded slightly in recent weeks.

Traders have attributed this fall in prices and demand for the raw materials to monsoon.

But realtors believe the prices are still fluctuating at unusually higher rates after a significant hike earlier.

The best-quality 500W or 72-grade steel rod now sells at Tk 67,000 per tonne, said a trader in the capital's North South Road area.

It was Tk 72,000 two months ago, he added.

This category rod cost roughly Tk 55,000 just a year ago, said Tanim Rahman, proprietor of Dewan Traders.

"Since then, the price was on the up and up. However, it has slightly decreased in recent weeks," he added.

Among other variants, Mr Tanim said, the price of 400W or 60-grade rod fell to Tk 55,000 from Tk 57,000 in early June.

The prices of most categories of rods have plunged in recent weeks because of the declining demand, he predicted.

"But the price may zoom up at the end of the rainy season when building work will start in full swing," Mr Tanim referred to hints from the millers.

The drop in prices globally also affected the local market, said Sheikh Masudul Alam, former chairman of Bangladesh Auto Re-Rolling and Steel Mills Association.

The price of scrap, the key material for steel rod, is now $390 per tonne from $430 three months ago, he said.

"Scrap price has decreased in the global market, though we expected further decline," Mr Alam added.

Steel rod prices in the local market fluctuate in line with that of the raw materials globally, he said.

But a baseless, unfounded complaint has been raised against steel millers, the business leader said.

Sources said the retail price of cement dropped by Tk 20 to Tk 25 per bag in the past two months.

The price actually rose by Tk 80 to Tk 90 per bag in the past seven to eight months, they added.

A cement trader in old Dhaka's Bangshal area said he is selling per bag cement at Tk 430 to Tk 450 depending on brands and quality.

Meanwhile, the prices of bricks, the essential building blocks, marked a rise recently, sources said.

Aminul Islam Shipon, manager of Ismita Traders at Gabtoli, said the price of bricks per truck (3,000 pieces) rose to Tk 27,000 from Tk 24,000 in May.

The prices of other categories of bricks increased to Tk 23,000 from Tk 21,000, he told the FE.

Brick chips (surki) of better quality are sold at Tk 16,000 per truck (190-200 sq feet), up from Tk 14,000.

The closure of brick making during monsoon and supply crunch are the reasons behind this rise, source said.

On the other hand, navigability of the rivers in monsoon usually helps cut sand price, they argued.

Mr Shipon said the price of top-quality stone sand reduced to around Tk 10,000 from Tk 12,000 per truck (190-200 sq feet) in recent weeks.

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