HYDERABAD: Despite a lull in construction activity, the prices of steel, cement, and other construction materials are soaring. The current prices have gone up by 70 per cent compared to the pre-pandemic rates. According to the Confederation of Real Estate Developers’ Associations of India (CREDAI), the manufacturers are finding it difficult to run the business on old rates due to the rise in coal and diesel prices.
Presently, the cost of re-rolling steel, mainly used in building independent houses and standalone structures, is Rs 67,000 per tonne. The price of prime steel is over Rs 70,000 per tonne, which was sold at less than Rs 40,000 per tonne before the pandemic. The price of prime steel like Tata, Vizag, and JSW had almost touched Rs 90,000 per tonne after the pandemic.
The price of cement in the retail market ranges from Rs 330 to Rs 350 per bag, which was sold at Rs 250 before the pandemic. In Telangana, around 15 companies, including India Cements, Orient, Sagar Cements, Penna Cements, Anjani Cements, and Zuari Cements, manufacture and supply cement within and outside the State. Most of the cement factories are based in the Nalgonda cluster. On average, the cement manufacturers supply 10 million tonnes of cement per annum, of which five million tonnes are required in Hyderabad alone.
It is very unusual that construction materials prices are so high even during the monsoon months when there is barely any construction going on. The construction activity usually picks up in the winter months. The builders fear they might go out of business if the cost of steel and cement rises further.
“The hike in prices of prime construction materials like steel, cement, copper, aluminum, and PVC has been steep since the pandemic. The possibility of the prices coming down anytime soon is very unlikely as the manufacturers face their own problems. This eventually burdens builders and buyers,” said CREDAI Telangana Chairman Ch Ramchandra Reddy.