GUWAHATI: There has been an unprecedented rise in the price of Thermo Mechanical Treatment (TMT) steel bars in Guwahati leading to unhappiness among traders, builders and the common public. TMT bars are used in building construction and constitute a major portion of the cost of a building. The coincidence here is, the rise is seen immediately after the assembly elections have to come to an end in different states, say some traders. Well, a few opined that it is due to the ongoing Ukraine-Russia conflict.
G Plus spoke to dealers who informed that a month ago One Metric Ton of TMT steel bar was selling for Rs 60,000 per Metric Ton and on Wednesday, March 9 it was hovering at around Rs 85,000 per MT, with chances of going further up.
"We are not able to understand why the prices are going up in this manner. It will not only hamper our business but will also affect the general public who are constructing houses on their own. The government is silent about it as this is not an everyday use item. According to market talks, there was a lot of collection of donations before the assembly polls from businesses manufacturing TMT bars. Now as the elections are over, it seems the manufacturers are balancing by raising the price. At the end of the day this price rise is going to eat the common man's savings who are trying to build a house," said a dealer of construction materials from Zoo Road, Guwahati.
The sudden jump in TMT steel bar rates is affecting the budget of the general public who are in the middle of constructing their homes and are on a tight budget.
"This rise in TMT bar prices is burning holes in my pocket. I have just completed the first floor and there are three more floors to go. Also, other raw materials are witnessing a price rise. Construction of a house is getting expensive each day," said Anupam Gogoi a resident of the Ganeshguri area.
According to news reports, domestic steel manufacturers have recently raised the prices by Rs 5000 per tonne sighting the Russia-Ukraine conflict. India relies on imported coking coal, an important raw material used in steel making. Also, Russia and Ukraine are not only steel manufacturers but also suppliers of raw materials like coking coal, used in steel making.
“There are many reasons for the increase in the price of TMT steel bars. A lot of it is connected to whatever is happening in the international market. Plus there is the Russia-Ukraine conflict. There are also supply chain issues that have to be looked at. India exports steel to other countries and that might be one of the reasons as more demand from outside leads to increased supply thereby resulting in an increase of cost locally. There is no doubt the increase in prices has hit everyone who is in the business of construction. For example, in apartment construction, approximately seven kilos of steel is used per square feet of construction. Six months ago the price was Rs 43,000 per MT and today it is Rs 85,000 per MT. You can calculate the difference per square foot of construction. This is really overwhelming for everyone,” said a real estate developer in Guwahati.
