UNB, Chattogram :
A sharp surge in steel bar prices in the local markets of Chattogram in recent months, triggered by supply chain disruption, has dealt a big blow to Bangladesh’s realty sector.
Though the price of steel bars — a key raw material in the construction sector — nosedived due to fall in demand soon after the Covid-19 lockdown, it started rising on the back of hike in industrial activity, post-unlock.
Steel bars or mesh of steel wires are used as a tension device in reinforced concrete and reinforced masonry structures to strengthen construction and aid the concrete under tension. While realtors blame the steel rod traders for superficially increasing the prices in the wake of rising demand during the construction season, the latter attributes the hike to shortage of scrap supply from Chattogram’s ship-breaking industry.
UNB recently carried out a reality check and found that four types of steel rods were being sold in the markets of Chattogram.
While grade 75 steel is produced in auto factories using modern technology, grade 60 is manufactured in semi-auto factories and grade 40 in general factories. Another steel bar, known as ‘Bangla rod’ is also available in the local markets.
Grade 75 steel, which was Tk 50,000-55,000 a tonne just a week back, now costs Tk 55,000-60,000 a tonne, UNB found.
A sharp surge in steel bar prices in the local markets of Chattogram in recent months, triggered by supply chain disruption, has dealt a big blow to Bangladesh’s realty sector.
Though the price of steel bars — a key raw material in the construction sector — nosedived due to fall in demand soon after the Covid-19 lockdown, it started rising on the back of hike in industrial activity, post-unlock.
Steel bars or mesh of steel wires are used as a tension device in reinforced concrete and reinforced masonry structures to strengthen construction and aid the concrete under tension. While realtors blame the steel rod traders for superficially increasing the prices in the wake of rising demand during the construction season, the latter attributes the hike to shortage of scrap supply from Chattogram’s ship-breaking industry.
UNB recently carried out a reality check and found that four types of steel rods were being sold in the markets of Chattogram.
While grade 75 steel is produced in auto factories using modern technology, grade 60 is manufactured in semi-auto factories and grade 40 in general factories. Another steel bar, known as ‘Bangla rod’ is also available in the local markets.
Grade 75 steel, which was Tk 50,000-55,000 a tonne just a week back, now costs Tk 55,000-60,000 a tonne, UNB found.
