Rod Price going up in Bangladesh Marketzooit
The price of rods increased sharply with the new year compared to last year. It has already affected the construction industry of the country. Prices went up by over 40% to about Tk73,000 a ton last month from Tk 52,000 a ton the month before, according to the Bangladesh Auto Re-Rolling and Steel Mills Association (BARSMA). It began to rise gradually since the beginning of the year with soaring prices of melting scrap in the international market amid the US move to slap tariffs on steel and aluminum imports. Rebar millers claimed the increased import costs is due to the weakening of the taka against the US dollar, the higher transport costs due to the restriction on overloading, and congestion at the ports, has contributed to the hike in prices
According to the state run organization, Trading Corporation of Bangladesh (TCB), the price of 60-grade rod increased by 36.19%, while the price of 40-grade increased by 35.63% compared to last year. “60-grade MS rebar, or better quality, is being sold from Tk71,000 to Tk72,000 per ton. The price used to range from Tk59,500 to Tk60,500. On the other hand, 40-grade MS rod is being sold for Tk58,000 to Tk60,000 per ton, which was earlier on sale for Tk50,5000 to Tk51,500 per ton,” the TCB also mentioned. Rod business companies said there are four majorcompanies in the rebar business market: Bangladesh Bangladesh Steel Re-Rolling Mills (BSRM), Rahim Steel, Bandar Steel Industry Ltd, and Abul Khair Steel Mills ltd. These companies play a major role in the price of rods. They also said that of these four companies, BSRM has 30% of the country’s rod market. About 20% market share is held by Rahim Steel, Bandor Steel, and Abul Khair Steel Ltd. A few other companies like Kabir Steel Re-Rolling Mills (KSRM), Ratanpur Rerolling Mills (RSRM), Anwar Ispat ltd, Shafiul Alam steel, Shahriar Steel Mills hold the remaining 50% market share. When contacted, BSRM Steel Ltd was not interested to talk about the recent price hikes.