The New Nation - Internet Edition

UNB, Dhaka

The country's steel and re-rolling millers are passing through a bad time, as the prices of raw materials of their products have marked a sharp fall in the last couple of months.

According to industry sources, the prices of raw materials of steel and re-rolling products, particularly that of melting and re-rollable scraps, have come down to US$ 450 from US$ 640 per ton in the last two months.

As a result, the millers who imported raw materials two months back are now receiving those, counting a loss of about US$ 200 per ton.

Even though the sudden fall in the raw material prices have put the steel and re-rolling millers into trouble, it has little impact on the local retail market of MS rods.

"Due to the effect of the price fall on the international market, we' ve to sell our products at lower prices suffering a loss of Tk about 14,000 per ton, but there is no impact of it on the retail market," said a re-rolling mill owner.

He said the retailers are still selling the MS rod almost at the same high prices as they did two months back.

According to the sources, the 40-grade MS rod is selling at between Tk 55,000 and 60,000 per ton, while the 60-grade MS rod at Tk 70,000 per ton. The price of 60-grade rod remained unchanged.

Similarly, the effect of price fall of the MS rod is also not visible in the real-estate sector.

MS rod manufacturers alleged that the developers had raised the prices of apartments showing the excuse of rise in steel products. "But these developers who directly collect MS rods from steel mills at lower prices have not yet reduced the prices of apartments. So, the customers are not getting the benefit of price fall," said a MS rod manufacturer.

Allegations are also there that a section of developers and contractors involved in public works through tenders is asking the manufacturers to produce lower sized rods than the standard ones.

They ask the manufacturers to make 10-millimetre (mm) rod 9-millimetre one and the 16-millimetre rod 15-millimetre one.

"This is simply cheating… with this practice, both the developers and contractors are making undue profits, while the government and apartment buyers are counting losses and receiving substandard products," said another miller.