Prices of key construction materials, mainly mild steel rod that shot up during political turmoil, now remain almost the same in the local markets.
The prices of cement have now more or less been stabilised following its smooth supply in the city.
However, the prevailing prices of MS rod are at least 10 per cent higher than that what it was two months ago.
Construction materials are showing signs of rising demand after nearly three-months of restive politics, traders said.
The traders in the city told the FE the prices of rod remain high in the city mainly due to its poor supply while the rod makers blame it on rise in prices of raw materials both in domestic and international markets.
However, existing prices of MS rod remain 6.0-7.0 per cent lower over that of the corresponding period a year earlier, according to the Trading Corporation of Bangladesh (TCB).
As of Monday, the retail prices of MS rod (60-grade) in the city ranged between Tk. 60,000 and Tk. 63,500 a tonne while the 40-grade remained at Tk 10,000 less than that of the 60-grades.
ABM Harun-ur-Rashid, proprietor of Maya Iron & Steel Store at the city's English Road said the prices of rod remain high mainly due to poor supply of quality rods.
He claimed the branded rod makers have been supplying fewer quantities of steel products. "We're now supplying the item to our customers by paying transport costs on our own."
He said the prices had jumped up to Tk 67,000 per tonne during political turmoil in November and December due to high transport rentals across the country.
The country's around 70 per cent rod comes from Chittagong while around 60 per cent cement from Narayanganj and Munshiganj districts.
Md Selim Hossain, manager of T Ali Enterprise at Maniknagar Biswa Road in the city told the FE that the prices of rod usually rise during its peak construction period that begins from September to October and lasts up to March and April.
Mr. Hossain warned of further rise in prices of MS rod in the days ahead as the supply from the major makers has shrunk.
"The prices of rod remain the same across the country but it soars either due to rise in the prices at its mill-gates or high transport costs."
"Believe me or not, we're happy by getting commissions from the rod manufacturers," Mr. Hossain added.
The prices of cement, another key building construction material, that had surged by 10-15 per cent during restive politics, has now been stabilised somewhat. But, some retailers at different city areas are still charging higher prices on ground of slow supply.
The prices of cement now range between Tk 420-Tk 495 each-50 kg bag depending on the brands.
Cement manufacturers claimed that they did not raise the prices despite arson attacks on their own trucks and covered vans.
"We took shelter even from third party sources to distribute cement after arson on our own motorised vehicles, but we didn't raise prices," claimed an official at the Premier Cement, a popular brand in the country.
Amirul Haque, managing director at the Premier Cement told the FE: "We didn't hike cement prices even during blockades when movement of goods almost halted."
He said some foreign companies had increased the cement prices during the blockades that caused supply crunch in the market.
"This is completely a competitive market. If we increase prices, we'll lose the market share."
It is learnt that the cement manufacturers work like a cartel and they increase prices of the construction materials in a body.
Mr Haque said the prices of clinker have gone up in the international market. "We may raise cement prices to make adjustments with the clinker prices."
Refuting rise in rod prices in local market, BSRM, the biggest rod producing company, said enhancement of prices is simply due to rise in prices of its raw materials both in domestic and international markets.
"The prices of billet in the international market increased by Tk 5,000 each tonne," Mr Aameir Alihussain, a director at the BSRM Group told the FE.
Mr Aameir also said the prices of scraps in both local and international markets have also increased.
