In a recent development, the construction iron sector in the country is witnessing a significant surge in costs, causing a ripple effect across the industry. Local steel producers have announced a substantial increase of 7,000 rupees per ton, setting a new benchmark at an unprecedented 2,70,000 rupees.
This surge closely follows a prior hike on October 31, where the price of iron per ton saw a 5,000 rupee increase. Analysts attribute the upward trajectory in iron prices to the escalating costs of raw materials. Any disruptions in the raw material supply chain pose additional risks, compounding the challenges faced by the construction industry amid the already escalating steel prices.
Conversely, in the northern regions of the country, there is a contrasting trend where the average retail price of cement per bag has slightly decreased by 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. While businesses must navigate the impact of climbing steel prices on project costs, the marginal dip in cement prices offers a silver lining for those planning construction activities in the near term.
