Prices of MS (Mild Steel) rods have risen abnormally on the pretext of syndicate as well as increase in fuel prices and transport fares. In the current market, the price of MS rod has increased by 32 percent in the last 5 months. This has hampered the infrastructural construction sector in Chattogram. About five months ago the price per rod was Tk 55,000 but, at present the price of rod has risen to Tk 80,000. As a result, the price per tonne has increased by Tk 25 thousand.
Owners of buildings under construction in Chattogram say rod prices are now unusually high. The industrial traders of this sector have increased the price of rods on various pretexts through syndicates. As a result, many owners have stopped building work in half.
I fear that besides rods, the prices of cement, sand, bricks etc. will also go up. In this situation, it has become difficult for those of us who have started the construction work to make up for it.
According to the Bangladesh Steel Mills Manufacturers Association, the shipbuilding industry is in a very bad condition in Bangladesh and Pakistan, including the labor movement. Besides, the price of scrap is the main raw material for making rods in the international market due to the increase in the price of old ships. They have expressed concern that the price of rod may exceed one lakh taka per tons.
REHAB Chittagong President Kauiam Chowdhury said that due to the abnormal rise in the price of rod, the ongoing development work of the government and its annual development program is expected to face a big risk. Besides, the housing industry at the private level will face a deep crisis.
A large part of the housing sector is spent behind the rod. Therefore, if the price of rod increases, it will have a serious negative impact on the industry.
Meanwhile, traders have blamed five factors for the abnormal rise in rod prices. These include rising crude prices in the international market, shipwrecks, rising fuel prices, rising dollar prices, and rising global demand for rods after Corona.
Masudul Alam Masud, Founding President of the Bangladesh Steel Mills Manufacturers Association, said, ‘The main raw material for making rods is old iron, known as scrap. By importing this scrap, we make billets in the factory and produce rods. '
Traders say demand for rods is generally low during the monsoon season. Demand increases in winter. Winter has started from November. At this time there is pressure of construction work in both public and private sectors. As a result, the price of rod is likely to increase further in the coming days.
According to National Board of Revenue (NBR) sources, the current tariff on import of raw material per tons of rod is Tk 1,500 per tonnes. Apart from this, value added tax or VAT of Tk 2,000 per tons rod is levied at the production stage.
It is to be noted that the Bangladesh Association of Construction Industries (BACI) has complained about the unusual increase in the price of MS (Mild Steel) rod through the syndicate. According to the organization, the price of MS rod has been increased by 25-30 percent in the current market through syndicate.
This will hamper construction. Due to which about 5 million people involved in this industry are being affected
