The New Nation - Internet Edition

Shamim Jahangir

Despite decrease in price of almost all the construction materials, the real estate builders are reluctant to reduce the price of readymade flats.

According to the Bangladesh Re-Rolling Mills Association (BRMA), the price of MS rod, one of the main materials for construction sector dropped significantly in the local market following reduction of consumption of the rod in the international market.

The price of 40-grade MS (mild steel) rod stands at Tk 40,000 a tone while the 60-grade rod at Tk 55,000 per tone in the local market yesterday. The price of 40-grad MS rod was at Tk 60,000 a tone while 60-grade at Tk 75,000 per tone three month before.

Steel traders here have incurred huge loss due to sudden fall of rod price in the local market, joint secretary of BRMA Mohammed Hymuyun Kabir said.

The government withdrew 15 per cent duty fees from imported steel following the price hike of steel couple months ago in the local market, he said, adding that the government should impose duty again to save the local producer.

In a letter sent to the Chief Adviser recently, Bangladesh Steel Mill Owners Association said the sector would loss around Tk 1,000 crore by selling their 5 Lakh tonnes reserved MS rod.

The steel mill owners and ship breakers urged the government to provide strong support to face the tough situation.

Besides the price of cement, another raw material stands at Tk 340 to Tk 350 per bag in the local market. It was selling at Tk 360 to Tk 370 before six months.

Secretary of Bangladesh Cement Manufacturers Association Azizur Rahman said that the cement manufacturers are now selling a bag of cement between Tk 340 and 360.

"It is Tk 20 to Tk 30 less for a bag from six months ago," he said.

He added that the price of cement would be reduced again if the fright fare and oil price will reduce further.

However, one thousand pieces of bricks are selling at Tk 6,000 to Tk 8,000 now varying upon their quality. It was selling at Tk 9,000 to Tk 12,000 of the one thousand before six months, a brick trader said.

A truck of sand is being selling at Tk 12,00 to 15,00 now. It was selling at Tk 1,800 six months ago.

Real Estate and Housing Association of Bangladesh REHAB President Eng Tanveerul Haque Probal said that they were not thinking about reduction in the flat price.

Though the prices of MS rod declined in the international market, the registration fees of flats has not been reduced, he said.

He called upon the government to reduce the registration fees of flats.