Prices of rod along with some other key construction materials have decreased slightly on the back of lower demand in recent time while the manufacturers are striving to survive, insiders said.
However, the prices of rod and other building materials like cement, ceramic tiles, bricks and sand might go up further from the existing level in tune with the expected rise in demand after the national election next month, they hinted.
Tanim Rahman, a trader in Old Dhaka's English Road area, said it is difficult to define the market as 'upward' or 'downward' after it has been highly volatile since the Covid-19 outbreak followed by Russia-Ukraine war.
"Comparing to the prices recorded in May this year, you can say rod is slightly cheaper now," he said.
A long-time price graph will reveal it is much higher than the usual price, he commented.
Better quality or 72 grade per tonne BSRM rod was selling at around Tk97,000 for the last couple of days which was Tk1,02,000 in May this year, he said, adding the price of the same category product of GPH Ispat decreased to Tk94,000 from Tk99,000 during the same period.
Data available with the Trading Corporation of Bangladesh (TCB) revealed that better quality MS rod was selling at between Tk92,500 and Tk 99,500 depending on different brands and markets on Friday, which was higher by Tk1,000 per tonne a week ago.
However, the government data revealed that existing price is 7.0 per cent higher than that of the last year.
Contacted, Masadul Alam Masud, managing director of Shahariar Steel Mills, told the FE, "The current price is a reflection of the millers' helplessness since they can hardly make profit with this."
"Mills are selling rod at a lower price mainly to make up their operational expenditure thus to help their business survive," he said.
He also said the dullness in the domestic economy following the global supply chain shocks due to Russia-Ukraine war has affected the rod makers.
"Price of per tonne scrap metal in the global market decreased, yet we have no scope to capitalise it as we have to pay much higher for dollar price," said Mr Masud, who is the founder chairman of Bangladesh Steel Manufacturers Association (BSMA).
Currently, per tonne scrap metal- key ingredient of steel products-is selling at $400-$450 which rose to as high as $550 earlier.
Meanwhile, one bag of cement, 50 kg in weight, was selling at Tk500 and Tk 550 in recent time.
"Some companies raised the price by Tk10, but there is higher chance of raising it by Tk20-Tk 30 when the demand returns to usual level," said Wahidul Islam, a trader in the city's Green Road area.
Mozammel Huq, a ceramic tiles seller in the city's Bangla Motor area, said sales at his outlet dropped to half of the usual due to weak demand.
Both the dealers of local manufacturers and importers are now following a coping mechanism of selling at the lowest price, he added.
Engineer Mahbub Hossain, owner of Azan Builders, said the dry season this year seems dull due to the cautious policy among all stakeholders since the 12th national election is knocking at the door.
"People are highly watchful on the political situation which highly impacts the investment trend," he said.
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