50pc rise in CI sheet prices in 2 years

Corrugated iron (CI) sheets are seen at a shop in Dhaka. High import cost of raw materials increased the prices of corrugated iron over 50 percent in the last two years. Photo: STAR

High import cost of raw materials soared the prices of corrugated iron (CI) sheet over 50 per cent in the last two years, halving the demand for the product that is mostly used by low-earning rural people.
A market survey says the CI sheet is now selling at a price ranging from Tk1lakh 7thousand to Tk 1lakh 9thousand a tonne, which was Tk97-98 thousand just two weeks back.
The sector people attributed such a price hike to the surge in the prices of raw materials in international market and imposition of VAT 9value added tax) on the raw materials since the 2004-05 fiscal year
Two years ago the cost of per tonne of CR (cold roll) coil, the main raw material for making CI sheet, was $500 million, but it is now sold at $900, pushing up the price of end products.
The prices of zinc ingot, another raw material, have also increased to $ 4,000 a tonne from $1,000.
“ Due to this rise in the prices and less demand for the product, the 6-7 CR coil manufacturers are only utilising 25 per cent of their production capacity,” said Khalilur Rahman, president of Bangladesh CR Coil Manufacturers and Exporters Association.
He went on saying “ two years ago we imported 8 million tonnes of raw materials a year for our industries, but last year we imported only 3 lakh tonnes.”
According to data showed by the association, the local manufacturers can produce 8lakh tonnes of CI sheet per annum if those utilise the full capacity against the domestic demand of 6lakh tonnes.
Generally the demand for CI sheet increases during January-April period, as people prefer to build or repair their houses on the harvest of paddy. But this year the sales of such sheets have slowed down.
“During the period 2 years ago, I used to sell 7-8 bans (a counting unit which means 6-10 pieces as per the size of the item) of CI sheets every day, but I hardly can sell three bans a day now,” said a retailer at French Road, the biggest CI sheet market in the city.
“Now on an average per ban of CI sheets is being sold at around Tk 6,000, but the rate was around Tk 4,000 two years ago,” said Aminul Islam Uzzal of Nazrul and Brothers, the exclusive distributor of Abul Khair Steel.
As increasing prices of essentials causes additional expenditure, the potential users of CI sheets are finding it very difficult to spend extra amount of money on buying CI sheets.
“Many customers visit my shop every day, but they leave without buying and say that they are unable to buy it at this exorbitant price,,” said M Sayeed, manager of Zahid Corporation, a CI sheet wholesaler.
“If this situation continues we will have to close our industries,” president of the association said, urging the government to reduce tax on the industry.
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