Al Amin :
Construction cost is climbing as the prices of all construction materials have increased, leaving the country’s housing sector hit hard in mid of the peak season, the industry insiders said.
The country has been facing a dollar crisis for a long time, which impacted on the entire economy, they added.
The prices of various goods have climbed as the manufacturers are failing to open letters of credit (LCs) for importing raw materials and sharp depreciation of local currency against dollar, they said.
They said the prices of rod, key material of the construction sector, have increased by over Tk 35,000 in the last 2.5 years to Tk 1,00,000 per tonne.
Although, the prices of it slightly dropped before the last national elections to Tk 94,000 per tonne as sales had declined during the beginning of the season due to political unrest centring the polls, but it is increasing again, they said.
Rod price was Tk 64,000 in 2020, Tk 70,000 in 2021, Tk 94,000 in 2022 and now it is selling at around Tk 1,00,000 per tonne as demand is growing.
Dr Sumon Chowdhury, Managing Director of Rani Re-rolling Mills Ltd, told The New Nation, “Manufacturers are failing to import raw materials of rods due to dollar shortage. Along with this, prices of raw materials have increased in global markets. As a result, production costs have grown up.”
Besides, transport cost is also growing due to the ongoing Red Sea crisis, which impacted the prices, he added.
The prices of cement, another key construction material, have also grown after the national polls due to increase in demand. Cement is selling at Tk 500 to Tk 550 per sack.
Manufacturers said the prices of it have increased as production cost increased around 40 per cent due to gas shortage and LC complexity.
Md Alamgir Kabir, President of Bangladesh Cement Manufacturers’ Association (BCMA), said, “The dollar crisis should be resolved soon to normalize the business environment. Before the Covid-19 pandemic, per dollar was Tk80, but now it is Tk 125. Despite the increased price of dollar, businesses are failing to open LC.”
“Due to the higher raw material cost and other production costs, the prices of cement may increase further,” he added.
Right after the elections, the price of LC stone has increased by Tk 10 to Tk 15 and is currently selling at Tk 215 per feet. Piling stones are being sold up to Tk 190 with an increase of Tk 15 to Tk 20 per feet.
With an increase of Tk 10 to Tk 15, red sand is being sold at Tk 55 to Tk 60 per CFT, white sand increased by Tk 5 to Tk 10 and is selling at Tk 20 to Tk30, while local sand is selling at Tk 17 per CFT.
The prices of bricks have also increased by around Tk 2000 per thousand to Tk 13,000 during the time.
