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Skyrocketing prices: With construction activity touching a new peak prices of building materials are climbing the ladder.

Hyderabad’s reputation for being an IT hub has boosted it’s size in area and infrastructure has become the main priority. Embracing its new sky line, spates of buildings taking shape every where have given a new boost to construction mater ial prices as well.

The rates of steel rocketed right from the start of January. Thermo Mechanical Treated (TMT) steel which started the year at Rs.26,000 per tonne were stable till the second week of October. The same shot up to Rs.28,000 and hung in there till a month and finally increased to Rs.28,500. On the other hand, Tata Steel is playing between Rs.36,500 and Rs.37,000 per tonne where as Vizag Steel is priced at Rs.35, 000.“Prices depend on demand of the material. Most local builders use TMT steel as a means of cutting costs. But there are construction companies who use branded steels like Tata and Vizag,” says Madhusudhan Reddy of Raghavendra Steel and Cements.

On the other hand, cement also saw a steady increase over the past few months owing to rampant constructions and short supplies. Starting from Rs.180 a bag, cement prices have gone up to Rs.224, depending on brands available. A bag of Maha Cement costs Rs.216, ACC comes for Rs.218, Ramco at Rs.220 and Ultratech is priced at Rs.224.

“The prices are based on the grade of the cement and they are categorised into two grades- 43 and 53. The 43 grade cement usually sets in slowly when compared to 53 grade cement and are priced accordingly,” informs a cement dealer at Bowenpally.

Sand wasn’t left behind in the rate race. The cost bounced from Rs.350 to Rs.400 per tonne earlier in the year and then saw a steep rise through out the year. Prices touched Rs.750 in between owing to demand before they came down to Rs.600 per tonne in December. Therefore body level sand costs around Rs.6,000 for 10 tonnes. “Earlier rates were a bit lower as one lorry would carry almost 18 tonnes of sand in one trip. But after traffic regulations on load were implemented, each lorry carries no more than ten tonnes. Therefore cost of sand shot up,” informs a sand supplier.

Bricks too have seen ups and downs during the year. Being a seasonal product, light weight bricks were priced at Rs.1.80 and heavy ones came at Rs.3.50 during January. The rates fluctuated during the summer and rainy seasons before touching Rs.4.50 for light weight bricks and Rs.2.70 for the heavier ones. “Price of bricks depend on seasons. In summer it is easier to make bricks when compared to the rainy season. Therefore buying bricks in summer turns out to be easier on the pocket,” says B. J. Kalyan, an architect.With international prices of timber growing at a phenomenal pace, Burma teak costs Rs.3,500 per cubic feet and Indian teak is now Rs.2,500. Neem and Mango are priced at Rs.250 and Rs.300 respectively where as Sal is available at Rs.750 to Rs.850 per cft and Meranti at Rs.850 and Rs.900. “People are not buying the right kind of timber due to increase in price. With rates growing steadily, it will be difficult to get good timber at a low value,” says Shridhar Malani of Padma Agencies, Timber Division

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