Rod at Tk 86,000-94,500 a Tonne in Dhaka as Building Material Prices Squeeze Home Budgets

Prices of the main home-building materials — rod, cement, bricks and sand — are showing mixed trends in markets across the capital. Prices have risen in some places compared with before, while in others they differ by supply and quality. This has raised fears of higher costs for people planning to build a new building or renovate an old house.

Market insiders say fluctuations in rod and cement prices in particular directly affect the total cost of construction work. A large share of the total cost of building goes on rod, cement, bricks and sand, so even a small change in the prices of these products can significantly affect the cost of an entire project.

According to recent rates in various markets in the capital, rod is currently selling at about Tk 86,000 to Tk 90,000 per tonne. However, depending on the grade of the rod and the manufacturing company, the price can be higher.

Grade-60 MS rod costs Tk 92,500 to Tk 94,500 per tonne, while grade-40 rod is available at between Tk 89,000 and Tk 91,000.

Cement prices also vary. A 50kg bag of cement is currently selling at about Tk 520 to Tk 560. However, depending on brand and shop, some cement is also available at Tk 510 to Tk 515. Cement of various brands is generally priced between Tk 475 and Tk 520, though prices can be higher for special brands or depending on the sales centre.

Brick prices also differ by quality. In the capital, first-class bricks cost about Tk 13,000 to Tk 14,000 per thousand. Second-class bricks are selling at about Tk 12 per piece. Prices vary in the market due to brick size, quality, place of production and transport costs.

Sand prices also differ by type and source. Coarse sand is currently selling at about Tk 35 per cubic foot. In some cases, the price drops to Tk 30 if the bag is returned. Pakshi sand sells at Tk 55 to Tk 60 per cubic foot, and filling sand at Tk 20 to Tk 25 per bag.

According to market insiders, production costs, raw material prices, transport costs, fuel costs and the supply situation play an important role in determining building material prices. When costs rise in these areas, the effect falls on the retail market for rod, cement, bricks and sand. The quality and brand of the materials and the location of the sales centre also create price differences.

When the prices of these materials rise in the construction sector, people building homes on their own initiative come under the most pressure, because their entire project budget depends on the rates of these materials.

With prices differing across the market, insiders advise verifying rates from several sales centres before starting construction work. They also stress confirming the grade of rod, the brand of cement, the quality of bricks and the type of sand before buying. The prices mentioned, however, are based on recent rate information and sales-centre-based calculations in Dhaka markets. Actual market rates may differ according to area, transport costs, product quality and the supply situation.