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Rod prices set a record high during the dollar crisis

Industry: Building Material, Steel
Industry Intelligence Tag: Industry insights

Mild steel (MS) rod prices, a vital element in building construction, reached an all-time high on Wednesday after rising by Tk5,000 per tonne in just seven days, adding to the pressure on the industry. At different mills in Chattogram on the day, a tonne of the top quality (75-grade) rod sold for Tk91,000–94,000, up from Tk87,500–89,000 a week earlier. The cost of 60-grade rods also increased, going from Tk84,000-86,000 to Tk89,000-91,000.

Manufacturers of rods claim that the previous two months have seen an increase in the price of rod-making scrap on a global scale, a substantial amount of which is imported. Shipbreaking yards in Chattogram, which provide the remaining scrap to rod mills, also saw a significant boost in pricing. They stated that price increases for fuel oil and electricity were also a factor in the increase and cited the dollar crisis as another reason, which has resulted in a considerable reduction in raw material imports. At the end of the previous year, the price of scrap was falling on the worldwide market, but the dollar crisis prevented us from taking advantage of that trend. According to insiders in the industry, scrap is currently being purchased from shipbreakers for Tk68,800 a tonne, up from Tk61,000 just a week ago. In addition, global scrap prices increased this week from $430 in November to $470 to $490 per tonne. Over the last week, the cost of a tonne of billet increased to Tk82,000 from Tk74,000 and the cost of a tonne of the plate to Tk76,000 from Tk72,000

 

Source for more details:

The Business Standard

 

Source for more details:

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