The Daily Star reported that around 400,000 tonnes of scrap iron and scrap vessels remain stockpiled in ship breaking yards in Chittagong as prices of rod are going up.

Industry insiders said that some leading re rolling mills has lowered their production in a bid to create a shortage of iron rod to hike prices. And some re rolling mills have suspended production on the grounds of raw material crisis despite the fact that the mills have tonnes of scrap iron at ship breaking yards.

Market sources said that the price of 40 grade rod made from scrap iron is rising almost everyday while the price of 60 grade rod made from imported billets remains almost steady at a higher level. Price of 60 grade rod ranged from BDT 69,500 to BDT 70,500 per tonne while the price of 40 grade rod hovered around BDT 65,500 per tonne.

Best quality 60 grade rod measuring 8mm of Bangladesh Steel Re rolling Mills were selling at BDT 70,500 per tonne. The price of 60 grade rods of other manufacturers such as Bayezid Steel Mills and Shima Re rolling Mills was hovering around BDT 69,500 per tonne. But the re rolling mills have attributed the high prices of iron rod to the price hike of billets and scrap irons in the international market.