Price hike of construction materials, especially MS rods and cement, which the manufacturers of those materials attributed to the Russia-Ukraine war, is hampering construction work in Chattogram.
Sources said prices of mild steel or MS rod witnessed at least Tk 8,000 hike per metric tonne (MT) in the last three weeks while that of a 50-kg- bag cement saw a maximum of Tk 60 hike in the same period.
Contractors in the port city said MS rods of different manufacturers were selling at Tk 85,000 per MT in the first week of the current month in the local market which has been increased to Tk 93,000 till Friday.
They said cement prices have also increased in the local market recently. A bag containing 50 kg cement of different brands was selling at Tk 430-440 only three weeks ago which is now selling at Tk 480-490.
They said prices of other construction materials also saw considerable hike since the Russia-Ukraine war started in late February, noting sands which are not imported, have also become costlier in the same period.
Price hike of these key construction materials are either slowing down the pace of many ongoing development work or completely stopping them for fund crunch, they added.
Contacted, eminent industrialist and GPH Group Chairman Mohammed Jahangir Alam said the war between Ukraine and Russia is one of the prime causes of the price hike of rods as supply chain of scrap iron or raw material for manufacturing rods has been disrupted by the war.
He said prices of per metric tonne scrap iron is now US $700 in the international market which was $300 earlier.
Besides, the cost of producing standard grade or quality iron rod locally increased recently. So the price of rods used in construction or development work has gone up now, he added.
Ship breakers and other steel manufacturers also said that scrap iron prices rose by $400 per MT in the international market recently.
The rate of scrap iron in the international market was only $300 per MT in March 2021 which is now selling at $700, they mentioned, adding "So, the prices of MS rod, one of the main materials in the construction sector, have increased up to Tk 93,000 per MT (in the local market)."
Local contractors said same is the case with cement. Cement prices significantly increased in the local market recently. One bag of 50 kg cement is now selling at Tk 480-490 which was Tk 430-440 just three two weeks back, they mentioned.
Asadujjaman Titu, General Secretary of Chattogram Contractors Association (CCA) said it is getting difficult now to continue construction work in the port city and as well as in the entire Chattogram division.
"Many construction works are being stopped due to unbelievable price hike of rods and cement. Besides, prices of other construction materials have also been hiked in the name of Ukraine-Russia war," said the CAA leader.
He also said there are more than 3,000 contractors who are engaged with construction work in Chattogram. 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 departments, he mentioned.
"Among them, many are involved in constructing private buildings or other establishments. But unfortunately, they cannot continue the construction works now as they did before amid an abnormal rise in prices of construction materials," he stated.
"Prices of construction materials have risen beyond the reach of contractors or ordinary people," he added.
Mohammed Shahidul Islam, another contractor of the city, said "We can no longer continue construction works here as prices of rod and cement and other key materials have gone beyond the purchasing capacity of the contractors amid the Ukraine-Russia war."
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