Prices of MS rod shoot up again

A file photo shows workers are laying rod at a construction site in Dhaka. Prices of MS rod, a construction material, have gone up again in the capital's retail market, although the government has taken initiatives to bring the item's price under control. During the last four days, the prices of both 40- and 60-grade rod and the deformed ones increased by Tk 2,500-Tk 6,000 per tonne. Photo: STAR

Prices of MS (mils steel) rod, a construction material, have shot up again in Dhaka retail market, despite government moves to bring the item's price under control.
During the last four days, the prices of both 40 and 60-grade rod and the deformed ones increased by Tk 2,500-Tk 6,000 per tonne. The retailers attributed this hike to the syndication of re-rolling mill owners.
According to the Nayabazar steel market, the largest rod market in the capital, the cost of 40-grade rod increased to Tk 69,000-Tk 70,000 a tonne, which was Tk 64,000-65,000 five days back.
The cost of deformed rod (without grade) rose to Tk 63,000-Tk 64,000 a tonne against Tk 56,000-Tk 57,000 just four or five days ago. The cost of 60-grade rod, which witnesses less price volatility, increased to Tk 72,500-Tk 73,000 a tonne, which was sold at Tk 70,000-Tk 71,000.
Blaming the re-rolling millers for creating instability in the local market, a retailer said, “ In the past ship-breakers were involved in price manipulation, but now it is the rod manufacturers who are behind the move.”
But, the trade body for the re-rolling millers thinks that the high prices of melting scrap and re-rolling scrap, the raw material of MS rod, in the international market has caused the recent hike in prices of rod.
According to Masudul Alam Masud, general secretary of the Bangladesh Re-rolling Mills Association, the prices of melting scrap and re-rolling scrap increased from $ 650 to $750 a tonne in the international market.
Masud also blamed that the ship-breakers are also selling re-rolling scrap and melting scrap at Tk 42,000 and Tk 54,000 per tonne respectively, which is higher than the price fixed by the government.
Tk 40,000 is the fixed price for melting scrap and Tk 52,000 for re-rolling scarp.
Before this fresh round of price hike, prices of rod have witnessed a reduction following the government's threat to take action against any price manipulation on April 29.
After the government's threat the price of rod decreased by Tk 8,000-Tk 9,000 a tonne.
When asked about the present price of the raw materials, the leaders of the Bangladesh Ship Breakers Association did not agree to talk.
The government last month formed a committee to find the reasons for unprecedented price hike of the construction material in the local market. The committee submitted the report with eight-point recommendations. But the recommendations are yet to be utilised.
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