'Rod price raised due to global price impact'

FT ONLINE

The recent price hike of rod does not for syndicate, rather it is an impact of raw materials price hike in the global markets, claimed leaders of different rod mill owners' associations.

They clerified that the price hike of row meterials in the global markets, raise of transport cost and imposition of additional taxes are beind the recent price hike.

The associations' leaders were addressing a press conference jointly organised by Bangladesh Auto Re-Rolling and Steel Mills Association, Bangladesh Re-Rolling Mills Association and Bangladesh Steel Mill Owners Association at the Jatiya Press Club in the city on Thursday.

They said, the high rate of raw materials, dollars exchange rate, increase of Port cost, gas crisis, high rate of electricity and the increase of bank loan are the causes of the rise of rod price.

President of Bangladesh Auto Re-Rolling and Steel Mills Association Manowar Hossen told the briefing that the main raw materials of rod is scrap. In the international market the rate of scrap was $312 in July 2017, but in the last month (March) it was $427.

He said the increased import price is due to the weakening of the taka against the dollar, the higher transport cost due to restriction on overloading, and congestion at the Port, has contributed to the hike of rod prices.

Manowar claimed that the production cost of each ton of rod is Tk 73,435. If the prices of scrap is increased again in the international market, the production cost will further increase and the situation will be worsen, he warned.

He, however, recommended five points to reduce the cost of rod. They are: direct transportation of goods from ship, reduce imported tax on scrap to Tk 500 instead of Tk 1000, reduce advance income tax from Tk 800 to Tk 400, and fixation of imported chamical advanced tax at Tk 1,200 instead of 5 per cent.

Besides, the millers also urged the government to take action to reduce the interest rate of bank loan and ensure uninterrupted supply of gas and electricity.

Recently, the price rate of rod has been increased from Tk 55,000 to Tk 70,000.

REHAB, a housing business organization at a press conference has criticized the unhealthy increase of rod prices. They claimed that the raise of rod price is unreasonable.

BGMEA, the garment industry owners' organization, also expressed its anger at a programme over the price hike of rods.

In reply to the criticism by the businessmen about rod price hike, Manowar said, in India per ton rod is being sold at Rs. 55,460 (Bangladeshi taka 72 thousand 98). But in Bangladesh it is Tk 70,000.

He also said, we request to the government to control the rod market, otherwise it will be out of control.

General Secretary of Auto-Re-Rolling and Steel Mills Association Mohammad Shahidullah and General Secretary of Bangladesh Steel Mill Owners Association Md.Shahjahan, among others, were present at the press conference.