Chattogram Bureau :
The prices of mild steel rods have surged by around Tk 4,000 per tonne within just two weeks, which manufacturers attribute to increased fuel cost amid a gas supply shortage, rising booking rates of raw materials in the international market, and a decline in raw material imports due to the ongoing dollar crisis.
As per information from the steel mills, mild steel rods of 75-grade are presently available in the market at prices ranging from Tk 93,000 to Tk 95,000 per tonne, varying across different brands. This marks an increase from the pre-election rates of Tk 90,000 to Tk 91,000 per tonne.
Among the 75-grade rod brands, BSRM is currently priced at Tk 95,000 per tonne, GPS at Tk 93,500 per tonne, and both KSRM and AKS at Tk93,000 per tonne. Prior to the election, the rates were Tk 91,500, Tk 90,500, and Tk 90,000 per tonne for BSRM, GPS, and both KSRM and AKS respectively.
According to industry insiders, the price hike coincides with a period when government projects have not yet commenced in full swing following the 7 January polls. Additionally, large private and commercial construction projects are also at a standstill. They say both the demand and sales of rods are currently low. Tapan Sen Gupta, deputy managing director of BSRM, the country’s leading rod manufacturer, said the steel sector is currently undergoing a critical phase. The surge in the booking rate of raw materials in the international market, coupled with insufficient imports due to the dollar crisis, has led to an increase in the price of steel raw materials by Tk 8,000- Tk 10,000 per tonne.
Mohammad Sarwar Alam, director of HM Steel and Industry Limited, said there has been a crisis in this industry since the Russia-Ukraine war. Due to the dollar crisis, letters of credit cannot be opened in line with demand, causing steel raw material imports to plummet to 20 per cent of the required amount.
Unless this issue is promptly addressed, a significant shortage of raw materials is anticipated in the coming months, he said.
SM Kamruzzaman, rod trader and owner of Messrs Zaman Enterprises in Chattogram’s Asadganj area, said rod prices have resumed an upward trajectory after the election, following a downward trend for around two months.
