Rod prices jump Tk10,000 per tonne in 10 days, cement up Tk25 per bag
The four dominant brands in the local market – BSRM, Abul Khair Steel (AKS), GPH and KSRM – have all raised prices significantly since tensions escalated in the Middle East
Bangladesh's construction materials market is facing rising prices, with the cost of key inputs such as steel rods and cement increasing sharply in recent days.
Over the past 10 days, steel rod prices have risen by up to Tk10,000 per tonne, while cement prices have increased by Tk20-25 per bag, according to market data.
Industry players say higher import costs – particularly for scrap and freight – driven partly by tensions in the Middle East, along with a gradual increase in construction activity after the national election are pushing prices upward.
Rod prices climb sharply
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According to market sources, 75-grade mild steel rods are selling at Tk90,000 to Tk95,000 per tonne at the mill gate level. Ten days earlier, the same grade was priced between Tk80,000 and Tk83,000 per tonne.
Among major brands, BSRM rods are selling at around Tk95,000 per tonne, KSRM at Tk91,000, GPH at Tk92,000 and AKS at about Tk92,500.
Prices of 60-grade rods have also risen significantly. They have increased by around Tk9,000 per tonne within 10 days and are now selling between Tk87,000 and Tk88,500.
Brands such as HM Steel, BSL and ZSRM are selling at around Tk89,000 per tonne, while Al-Aksa, Montaha, Kadamtali, DSRM and JSRM are priced around Tk88,000. Fresh, IRML and HKG rods are selling at approximately Tk87,000 per tonne.
The four dominant brands in the local market – BSRM, Abul Khair Steel (AKS), GPH and KSRM – have all raised prices significantly since tensions escalated in the Middle East.
Before the conflict, their rods were priced between Tk81,000 and Tk85,000 per tonne. Most of these brands have since increased prices by roughly Tk8,000 to Tk10,000 per tonne, while medium-range brands have also raised prices significantly over the same period.
Sudip Ghose, owner of Prime Steel, a rod dealer in Chattogram's Madarbari area, said prices began rising soon after tensions escalated in the Middle East.
"Large brands have raised rod prices by about Tk10,000 per tonne in the past 10 days," he said.
Cement prices also rise
Cement prices have also increased after remaining largely stable for months.
Mohammad Shahjahan, an agent of Confidence Cement's Rajmistri Green brand, said almost all cement brands raised prices by Tk20-25 per bag within the past three days.
Market sources say Ruby Cement is selling at around Tk520 per bag, while Confidence and Diamond brands are priced at Tk500. Royal Cement is selling at Tk495, Seven Rings at Tk490, Rajmistri at Tk480 and Premier Cement at Tk475.
Industry officials say cement producers were forced to sell below production cost for nearly a year and a half due to weak demand in the construction sector.
Mohammad Amirul Haque, managing director of Premier Cement Mills PLC and president of the Bangladesh Cement Manufacturers Association (BCMA), said the latest price adjustments have helped partially align market prices with production costs.
"For nearly one and a half years, we had to sell cement below production cost because of the stagnant market," he said. "The recent increase has allowed some commercial adjustment between costs and selling prices."
Raw material and freight costs behind the hike
Industry leaders attribute the recent price increases to a combination of stronger domestic demand and rising import costs.
Bangladesh depends heavily on imported raw materials for both steel and cement production. The Middle East conflict has pushed up global fuel prices, which in turn raised shipping costs.
As a result, the cost of importing steel scrap – the primary raw material for rod manufacturing – and clinker, the key ingredient for cement, has increased.
BCMA President Amirul Haque said clinker booking prices in the international market have risen significantly.
"Import costs have increased due to higher freight costs, so we had to adjust cement prices accordingly," he said.
Scrap prices and supply pressure
Steel producers say global scrap prices have also increased sharply.
The cost of imported scrap has risen by about $50 per tonne, or roughly Tk6,000. Although shipments at the higher prices have not yet reached Bangladesh, the impact is already visible in the domestic market.
Prices of scrap from Bangladesh's shipbreaking industry – another major source of raw materials – have climbed by around Tk3,000 per tonne, reaching about Tk58,000, according to market data.
Shipping costs have also increased substantially. The cost of importing scrap to Chattogram, including freight, has increased from about $360 per tonne to roughly $410 per tonne.
Iftekhar Ahmed, country head of Singapore-based scrap exporter Jaguar Resources and Capital, said freight costs surged sharply after tensions in the Middle East intensified.
"Scrap prices were already rising somewhat before the conflict," he said. "But shipping costs increased abnormally after the situation escalated, forcing suppliers to reconsider new offers."
Mohammed Jahangir Alam, president of the Bangladesh Steel Manufacturers Association and chairman of GPH Ispat Limited, said many companies had been selling rods below production cost for a long time due to weak demand.
"The ongoing conflict in the Middle East has pushed up global fuel prices, shipping costs and the price of scrap – the main raw material used in rod production. At the same time, the dollar has been strengthening," he said.
"To cope with these additional costs, rod prices have been adjusted," he added.
Factories restart as demand rebounds
Industry insiders say the construction sector had remained sluggish for more than a year and a half, largely due to political uncertainty that slowed both government and private projects.
At one point, rod demand fell by nearly 50%, forcing several steel plants to halt operations.
In Chattogram alone, factories such as Golden Ispat, Baizid Steel, Sheema Steel, Sitalpur Steel and SS Steel had suspended production for extended periods.
However, industry players say the situation has begun to improve following the election.
Mohammad Sarwar Alam, director of HM Steel, said sales of MS rods have increased over the past two weeks as political stability returned after the election.
"Factories that had been operating at a loss are now seeing some relief," he said.
