In a recent development, the construction iron sector in the country is experiencing a noteworthy surge in costs, creating ripples across the industry. Local steel producers have announced a substantial per-ton price increase of 7,000 rupees, pushing the new benchmark to an unprecedented 2,70,000 rupees.
This surge follows closely on the heels of a prior hike on October 31, when the price of iron per ton witnessed a 5,000 rupee increase. Analysts point to the escalating raw material costs as the driving force behind the upward trajectory in iron prices. Any disruptions in the raw material supply chain pose additional risks, compounding the challenges faced by the construction industry amid the already rising steel prices.
On the flip side of the coin, there’s a contrasting trend in the northern regions of the country, where the average retail price of cement per bag has recorded a slight decrease of 0.84%, settling at Rs 1,246 compared to the previous week. The latest weekly report maintains an average retail price of cement per sack at Rs 1,256.
This dynamic shift in the market presents both challenges and opportunities for stakeholders in the construction sector. As steel prices continue to climb, businesses must navigate the impact on project costs, while the marginal dip in cement prices offers a silver lining for those planning construction activities in the near term.
