Infrastructure News

Infrastructure, building projects hit hard by high cement, steel prices, Infra News, ET Infra

AHMEDABAD: The real estate sector is grappling with high steel and cement prices again. While steel prices had remained low in 2022, in the last two months they have risen by about 10%. Cement prices have increased by around 5% in the last month as well.

Gujarat Chamber of Commerce and Industry (GCCI) president Pathik Patwari said, “Steel exports have resumed, and companies are exporting more because they get better realization in the international market. The availability of plates has decreased in the domestic market, pushing prices up by more than 10% in the last month. The current price of steel plate is about Rs 70,000 per tonne while colour coated coil is Rs 98,000 per tonne. This was about Rs 84,000 two months ago.”

CREDAI Ahmedabad president Tejas Joshi said, “There is always volatility in the prices of cement and steel. Real estate project completion periods are more than two and a half years and raw material prices have a massive effect. The central government should set up a price regulatory authority for steel and cement,”

TMT bar prices have increased by about 10% to Rs 66,500 per tonne in the last three months, said Taral Shah, the MD of a construction company. He added, “Cement prices have also increased by around 5% to Rs 400 a bag. Cement prices have much more volatility. Labour costs have increased in the last few days due to lower availability because of the Holi festival. Construction activity is slow currently, at around 30% of normal, but key raw material have increased.”

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