Bangladesh’s construction sector is facing mounting pressure as the prices of key materials, particularly rod and cement, surge.
The sector, already struggling, is now grappling with the impacts of rising costs exacerbated by the ongoing Iran-Israel conflict.
Rod prices have spiked by Tk15,000 per ton, while cement has risen by Tk50 per bag in the past month. The surge is a direct result of escalating international fuel and freight costs, which have driven up the prices of construction materials heavily reliant on imported raw inputs.
Despite hopes that the newly elected government would bring stability, the crisis has deepened. Manufacturers attribute the price hikes to unavoidable increases in import costs, raw material prices, and production expenses.
The consequences are already visible. Rod and cement sales have plummeted by more than 30 per cent in the last month. Sales drops have been reported across the sector, with developers citing project delays and slowed construction activity due to soaring material costs.
S M Arifuzzaman, an agent for Confidence Cement (Green), stated that cement prices have risen from Tk470 to Tk520 per bag. In addition, rod prices have surged by over Tk16,000 per ton. Sales have fallen between 30 per cent and 40 per cent as a result.
Data shows that rod prices were Tk78,000–80,000 per ton in early March but have surged to Tk93,000–96,000 by April. Leading manufacturers such as BSRM, AKS, GPH, KSRM, and HM Steel have raised prices by an average of Tk15,000 per ton.
In the cement market, major brands including Ruby, Confidence, and Premier have raised prices by Tk40–50 per bag. Cement is now priced between Tk500–520 per bag, up from Tk460–480 in early March.
Manufacturers attribute the hikes to rising import costs, especially for clinker.
Mohammed Amirul Haque, President of the Bangladesh Cement Manufacturers Association (BCMA), revealed that clinker import costs have risen from $45 to $55 per ton. Despite aligning prices with production costs, the industry still faces pressure.
BCMA data shows that clinker constitutes 65–70 per cent of cement’s raw materials, and its price has risen by $8–10 per ton recently.
The Iran-Israel war has also increased international shipping rates. Freight costs, especially for road transport within Bangladesh, have risen sharply.
Developers in Chattogram are feeling the strain. Haji Delowar Hossain, Vice-President of REHAB, noted that rod prices have risen by at least Tk15,000 per ton in the past month, slowing down several large projects across the country.
BSRM data shows rod sales dropped by around 40 per cent in March compared to February. BSRM rods now selling for around Tk96,000 per ton.
The Bangladesh Steel Manufacturers Association reports that the country has over 200 steel mills, 40 of which are large-scale producers. The sector’s annual production capacity stands at around 11 million tons, while domestic consumption is only about 7.5 million tons.
The steel sector has attracted investments totalling around Tk75,000 crore, with annual transactions amounting to Tk70,000 crore.
However, the cost of key raw materials like scrap and clinker remains steady despite fluctuating import volumes. Importers, however, said the import prices for March barely reflect the recent hikes, and it should be visible in the upcoming consignments.
According to the National Board of Revenue (NBR), scrap imports increased to 4,06,581 metric tons in March, compared to 3,23,800 tons in February.
The average import price of scrap has remained stable at around Tk50,000 per ton.
Similarly, cement clinker imports rose to 2.13 million tons in March, compared to 1.73 million tons in February, with import prices holding steady at approximately Tk6,500 per ton. Including duties, the cost reaches around Tk12,000 per ton.
