Lockdown sends cost of building materials soaring

The cost of construction materials increased 4 percent due to the lockdown over the last two weeks.

Severe shortages of raw materials, transport and workers lay behind the increase in prices, industry insiders say.

Since the enforcement of strict lockdown, the retail price of per tonne of rod has gone up by Tk 2,500 to Tk 74,000 and the cement cost also had hikes ranging from Tk 10 to Tk 20 per bag in Dhaka.

“Mills are being hit hardest by material shortages and price rises because of Covid-19 and container congestion at ports,” Md Shahidullah, the secretary general of Bangladesh Steel Manufacturers Association, told Business Insider Bangladesh.

The price of the rod increased 30 percent to 40 percent in the last one year, according to him.

“The supply problems stem from rising transport and labour costs during the 14-day lockdown ended on Thursday,” Mohammad Zakir, the owner of Friendly Trade Link in Savar, said.

The government on Tuesday lifted the 14-day lockdown restrictions for nine days to allow people to celebrate the Eid-ul-Azha. Restrictions were eased from midnight on Jul 14 to Jul 23.

After the Eid holidays, previous restrictions will go into effect and remain in place till Aug 5.

Mohammad Khurshed Alam, executive director at Fresh Cement, said the price of raw material for cement increased by $4 in the international market in the last one month. “Yet, we did not increase the price.”

However, BSRM chief executive officer Shekhar Ranjan Kar said his company did not raise the road price during the lockdown.

Per tonne rod of AKS brand was being sold at Tk 73,500 from its original price of Tk 71,500.

Per tonne of BSRM rod was priced at Tk 74,500 from its original price of Tk 72,000, and KSRM at Tk 72,500 from Tk 68,500.

A sack of Fresh brand was being sold at Tk 460, Shah at Tk 430, Bashundhara at Tk 430, Scan and Holcim at Tk 450 by increasing Tk 10 to 20 per sack.