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Skyrocketing prices of steel, cement to cause surge in construction costs in Hyderabad

Price of steel has gone up by Rs 15 per kg, while cement has gone up by Rs 100 per bag: Traders

Published: 17th August 2021 09:20 AM  |   Last Updated: 17th August 2021 09:20 AM   |  A+A-

construction

For representational purpose

Express News Service

HYDERABAD: Carrying out construction works in the city is set to become costlier with prices of steel and cement skyrocketing after the Covid-induced lockdown was lifted in the State. The price of steel has risen by Rs 15 per kg in the past year, which translates to an increase of Rs 15,000 per tonne. While cement prices were hiked by Rs 100 per bag.

According to developers, following the informal cartelisation of manufacturers, steel and cement prices continue to be high. Both cement and steel manufacturers are controlling the prices of raw materials in order to stabilise their profits and reduce the company debts as the rate of construction has gone up by Rs 500 per sq ft, said a city-based developer.

C Shekar Reddy, Chairman, Indian Green Building Council, Hyderabad chapter, said that the rise in steel and cement prices are troubling both builders and buyers. “About 2.5 kg to 4 kg of steel is required a square foot construction of slabs. Since there is a huge requirement for steel for buildings, the construction project becomes costlier,” he added.

Most of the steel to the State is supplied by Tata Steel from its manufacturing units in Jamshedpur, JSW Steel from Karnataka and Andhra Pradesh, Jindal Steel from Jharkhand, Vizag Steel from Visakhapatnam and other local units in Telangana.

Mohammed Hanish, owner of Bawa Steel & Cement, Birmalguda, said that Tata Steel is being sold for Rs 62,000 to Rs 65,000 per tonne depending on the diameter. “Despite high prices, the demand for steel is good. We hope prices would come down in the favour of buyers,” he added.

For cement, traders say that the cement bags which used to get sold for Rs 250 to Rs 300 are now being sold for as high as Rs 400. The branded Ultratech Cement is now going for Rs 380 per kg in wholesale and costs Rs 410 to Rs 430 per kg while buying retail.

City-based cement distributor N Balaprasad, who is the owner of Sri Venkateshwara Traders, said that there is a price difference of Rs 100 on all cement bags in the past year. “Around 25 to 30 cement companies including Bharathi Cement, Ultratech Cement, Nagarjuna Cement and Ramco Cement supply their products to the State,” he added.



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