Will apartment prices rise due to rising cement and steel prices? – The New Indian Express
Express news service
CHENNAI: Apartment prices are expected to rise due to rising cement and steel prices, according to Confederation of Real Estate Developers of India (CREDAI) Tamil Nadu chairman Suresh Krishn.
Krishn told Express that the price of steel has risen from Rs 45 per kg to over Rs 70 per kg, while cement prices have exceeded Rs 500 per bag, impacting the cost of construction. . The State Treasurer of the Builders Association of India (BAI) S Rama Prabhu also said the price of steel and cement has increased and this will increase the cost of construction for an individual builder.
Prabhu said the price of steel has risen in the past 15 days. Cement and steel are major building materials and any price increase would impact not only the housing sector, but all infrastructure projects. Cement is one of the main building materials used in all segments of the construction industry, namely, housing (55% to 65%), infrastructure (15-25%), commercial construction and industrial (10-15%) and industry (5-15%).
While CREDAI and BAI have written letters to the Prime Minister on the matter, it appears that small and medium-sized businesses are also affected. KV Kanakambaram, president of the Industrial Estate Manufacturers Association, told Express he also wrote a letter to the prime minister on the plight of MSMEs. He said steel prices increased between March 2020 and June 2021, from Rs 45 to around Rs 80 per kg despite steelmaking input costs not even increasing by 20%.
“This is evident in the unprecedented profits on the balance sheets of steel companies. Rising steel prices have nothing to do with a national problem such as rising input costs or a change in government policy. The unusual and rare increase in steel prices is mainly due to the excessive export of finished steel, thus creating a shortage in India, ”he said. “It is also the Centre’s duty to ensure that steel prices are not allowed to rise in the local market in an exceptional way, upsetting the cost of government projects, killing MSME units and affecting the lives of the community. ‘common man when steel is used in almost all products,’ he said.
“Steel prices have crossed all limits in the last 6 to 8 months. In just one day, on June 1, the price of steel went up by 4,900 rupees per tonne for no good reason. we expect MSME units, current projects or car manufacturers to be ready for such a shock? ” he reasoned.
Meanwhile, a source from the National Highways Authority of India (NHAI) said the projects would be impacted due to Covid-19. “Let the pandemic pass. Then maybe steel prices will go down,” he added.
Meanwhile, the Cement Manufacturers Association of South India (SICMA) has denounced the developers and builders. “In all markets, builders access cement at a rate of Rs 6,000 per metric tonne or less. This means that the cement represents Rs 150 per square foot of built-up area. With the quantity being so small, one has to wonder how the price of cement can impact flat. cost of construction? ”a statement from SICMA said. However, the steelmakers could not be contacted.