Whether it is home construction or any other construction, an iron rod is essential for strength. Bars are used extensively in making roofs, beams and columns etc., of houses. The bar price (Saria Rate) was touching the sky until recently. However, it is a matter of relief that the cost of bars has been decreasing every day for the last few days. Some time ago, the saria sold beyond Rs 80,000 a quintal has fallen to about Rs 60,000 a quintal.
Saria has become so cheap.
The government has recently increased the export duty on steel. Due to this, the prices of steel products have fallen sharply in the domestic market. This is also the main reason for the decrease in the prices of bars. The decline can be gauged from the fact that once in April, the retail price of bars had reached Rs 82 thousand per tonne, which has now come down to Rs 62-63 thousand per tonne.
The price of branded bars has also come down by Rs 5-6 thousand a quintal in the last few months. The cost of branded bars has also come down to Rs 92-93 thousand per tonne. A month ago, their price had reached 98 thousand rupees per ton.
Retail Price of Bars (Rs. Per Ton):
- November 2021: 70000
- December 2021: 75000
- January 2022: 78000
- February 2022: 82000
- March 2022: 83000
- April 2022: 78000
- May 2022 (beginning) : 71000
- May 2022 (last week): 62-63000
Government Efforts and Weather Kind
The government has also reduced the tax on diesel and petrol to reduce the skyrocketing inflation. After this, the tax on its export was increased to control steel prices in the domestic market. These factors are contributing to the fall in the prices of bars. Apart from the efforts of the government, some aspects are also favourable.
As soon as the rainy season starts, the construction work starts decreasing, due to which the demand for building materials itself starts decreasing. As soon as the need disappears in the market, the prices of other building materials, including bars, start falling.
Due to these reasons also reduced price.
The dire conditions of the real estate sector are also cooperating at this time. One after the other, many big real estate companies is going bankrupt. The launching of the new project is almost stalled. Many old projects of developers are hanging.
Even small builders are not bringing projects. Due to this, the demand for bricks, cement, and bars, i.e. rods and sand, is lower. Even ordinary people do not like to build houses in the rainy season.
