Industry individuals said that expanded costs of some key development materials, including gentle steel (MS) bars, concrete, stone, and block, are creating problems for the nation’s development and land areas, reported the Financial Express.

Several construction firms have already ceased operations. They added that many other people are having trouble adapting to the price volatility, which has significantly impacted their activities.

Building material producers asserted that the price spiral was principally brought on by a rise in the price of raw materials on the global market due to the Russia-Ukraine conflict, along with other local and global reasons.

In addition, the country’s dollar crisis has increased import costs, which has fueled the fire even more.

The expense per ton pole denoted an ascent of around 8% on normal during the most recent half year, while concrete cost has likewise been keeping a higher pattern through promising and less promising times.

The best quality or 72-grade MS rod sold for between Tk 93,000 and Tk 1,02,000 per tonne, depending on the manufacturer, according to retail sources.

On the 7th of May, the prices of BSRM and AKS rods per tonne were Tk 1,02,000 and Tk 1,01,000, respectively, while those of other well-known brands were creeping close to Tk 0.1 million per tonne.

According to data provided by the Trading Corporation of Bangladesh (TCB), the price of higher-quality rods per tonne increased by 11.30 % in May this year compared to May 2022.
The statistics also showed that the price of 40-grade or lower-quality rods increased by almost 4% per tonne during the same period.

The cost per ton of salvaged material, the critical element of steel items, has marginally decreased to $460-500 in the worldwide market as of late, said Mr. Masud, additionally previous director of the Bangladesh Steel Makers Affiliation (BSMA).

“But we can’t benefit from the price decrease since we must pay higher costs for importing raw materials, which is a huge problem for us right now,” he told the Financial Express.

The price of a 50-kg Portland cement bag ranged from Tk 500 to Tk 560, depending on the brand. A year ago, the cost was between Tk 480 and Tk 530.

The current selling price for a truckload of 3,000 bricks was approximately Tk 45,000.

Rezwanul Kabir, director of the Bangladesh Association of Construction Industry (BACI), stated that the prices of nearly all building materials are steadily rising, posing a significant problem for them.

The BACI has around 200 enrolled individuals, though a colossal number of other (non-part) development organizations are working in the nation, as per the sources.

While some are waiting for price adjustments, many businesses have stopped looking for new projects.

He pointed out that the construction industry significantly contributes to the country’s gross domestic product (GDP) and that laziness in infrastructure development hurts the economy.

Three years ago, the sector provided direct employment for six million people and had a nearly nine percent share of the economy.

Local contractors suffer due to price volatility and the lack of an appropriate policy to modify rates per change. Local subcontractors are the ones that suffer, not the foreign contractors involved in the nation’s big infrastructure projects.