Cement, steel prices to rise again

Rising prices of fuel, transportation, electricity are continuously pushing up the prices

Dream home to cost more for common man

Aurangabad, Dec 4:

Cement prices are expected to rise again by Rs 15-20 per bag, given the sharp rise in fuel, transportation, coal and electricity prices. The prices have been rising erratically since the first wave of covid and now the price of cement has gone up to Rs 400 to Rs 430 a bag. It is likely to go up to Rs 450 after the new hike. The same bag used to cost around Rs 280 before corona. Steel prices are also expected to rise by another 10 per cent.

Lockdown was imposed in many countries due to covid disrupting imports and exports. This caused a huge spike in the steel prices. Now, with the shortage of coal and rising fuel and electricity prices, the cement prices are likely to rise again. Cement prices have risen by 45 per cent and steel by 80 per cent in the last one and a half years.

Likewise, the shortage of petroleum coke and imported coal and increased rates of transportation, will push up the cement prices again. According to sources in the construction industry, the steel companies are planning to increase the rates of steel by Rs 8-9 and a kilogram of steel will cost Rs 70-75 per kg. The combined effect of this will push up the construction prices further and will make buying a house more expensive for the citizens.

Further increase in construction rates

Cement prices have risen by 45 per cent and steel by 80 per cent in the last one and a half years. This leaves the builders with no option but to raise the prices of housing projects. As an organisation, we have requested the State and Central government to control the prices of construction material and provide a relief to the common man, said CREDAI members.

Construction cost to rise by Rs 400 per square foot

Wage rates have risen due to labour shortage in the construction sector. A year ago, the daily wage of a plasterer was Rs 750, but now it has gone up to Rs 1,000. The price of gravel was Rs 2,300. They have increased to Rs 3,400. Price of unwashed sand has gone up from Rs 4,000 per brass to Rs 4,700 and plaster sand from Rs 5,100 to Rs 7,500. The price of PVC pipe has been increased from Rs 400 to Rs 750 that is an increase of 87 per cent. As a result, the pre-planned economic math of the construction projects has to be matched by the builders. This will increase the construction rates by Rs 400 per square foot.