Manufacturers have attributed the soaring dollar prices to price hike of rods and cement, saying they have to collect the raw materials, scrap iron and clinkers, at high prices.

Traders said 60-grade MS rod now sells at Tk 40,000-Tk 41,000 a ton against Tk 38,000-Tk 39,000 two weeks ago while 40-grade MS rod now sells between Tk 38,000 and Tk39, 000 a ton against Tk 36,000-37,000 two weeks ago.

The cement traders said prices of cement have shot up by Tk 15-Tk 25. They said a 50-kg bag of local cement now sells at Tk 275- Tk 285 against Tk 260-Tk 270 two weeks ago.

However, the prices of cement manufactured by foreign companies remain stable between Tk320 and Tk 325.

The manufacturers also said frequent power outage in factories is resulting in increased production costs.

"Banks are showing reluctance in opening letters of credit (LCs) to import raw materials of MS rod due to dollar crisis and failing to make payments against imports in time," said Sk Masadul Alam Masud, general secretary of Bangladesh Re-Rolling Mills Association and Bangladesh Steel Mill Owners Association.

Banking sources said the greenback gained by 3 percent against taka in the last one month.

Masud also said power outage has cast an adverse impact on production. He said the production capacity of his factory has come down to 30 metric tons a day against the capacity of 50 tons.

PRICE ALSO UP IN CTG

Our staff correspondent from Chittagong adds: 60-grade rod now sells at Tk 39,500 to Tk 39,900 a ton against Tk 34,000 to Tk 34,500 last month.

Cement prices also witnessed a sudden hike of Tk 20 to Tk 30 for each 50-kg bag, traders said.

The price hike of rod and cement has cast a negative impact on construction projects, said Md Ishaque, a rod-cement trader in the port city.

According to the traders, the prices for rod have increased thrice in one month.