Steel, cement costs jumps up by 35% over last two months

11 Mar 2022 CW Team

The costs of basic construction materials – steel and cement – have increased by 35% over the last two months, hurting the profit margins of developers.

While steel costs have reached Rs 80,500 per tonne, cement prices are Rs 430 per bag, adding to the construction cost in the ongoing projects.

As per the developers, increasing raw material costs are not only impacting construction and procurement but are additionally likely to impact the demand for new projects. Steel costs hovered about Rs 60,000 per tonne in December-end whereas cement prices were Rs 325 per bag around the same period.

Tejas Joshi, president, Confederation of Real Estate Developers' Associations of India (Credai) Ahmedabad, told the media that steel and cement account for an estimated 30% of the production cost in real-estate projects. Projects which are underway will be adversely influenced because of the abrupt increase in raw material costs. It will impact the revenues of real-estate developers as they will not be able to pass on costs to consumers as costs for existing projects are fixed in advance.

Increasing steel and cement costs have additionally been the bane of construction contractors. Gujarat Contractors’ Association (GCA) has a long-pending demand with the government — revision of project costs following increasing costs.

Even developers are considering holding discussions with the state government and Gujarat Real Estate Regulatory Authority (RERA) to allow builders to modify and renegotiate project prices, as per Jaxay Shah, chairman, Assocham Western Region and a developer based in Ahmedabad.

In 2020, the average price of steel was about Rs 35,000. It implies, over the last couple of years, costs have more than doubled, adding to product prices. Developers foresee that surging costs of steel and cement will impact affordable housing projects as property costs are set to increase.

Image Source

Also read: Cement prices witnesses 3 to 5% increase on monthly basis in Jan

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The costs of basic construction materials – steel and cement – have increased by 35% over the last two months, hurting the profit margins of developers. While steel costs have reached Rs 80,500 per tonne, cement prices are Rs 430 per bag, adding to the construction cost in the ongoing projects. As per the developers, increasing raw material costs are not only impacting construction and procurement but are additionally likely to impact the demand for new projects. Steel costs hovered about Rs 60,000 per tonne in December-end whereas cement prices were Rs 325 per bag around the same period. Tejas Joshi, president, Confederation of Real Estate Developers' Associations of India (Credai) Ahmedabad, told the media that steel and cement account for an estimated 30% of the production cost in real-estate projects. Projects which are underway will be adversely influenced because of the abrupt increase in raw material costs. It will impact the revenues of real-estate developers as they will not be able to pass on costs to consumers as costs for existing projects are fixed in advance. Increasing steel and cement costs have additionally been the bane of construction contractors. Gujarat Contractors’ Association (GCA) has a long-pending demand with the government — revision of project costs following increasing costs. Even developers are considering holding discussions with the state government and Gujarat Real Estate Regulatory Authority (RERA) to allow builders to modify and renegotiate project prices, as per Jaxay Shah, chairman, Assocham Western Region and a developer based in Ahmedabad. In 2020, the average price of steel was about Rs 35,000. It implies, over the last couple of years, costs have more than doubled, adding to product prices. Developers foresee that surging costs of steel and cement will impact affordable housing projects as property costs are set to increase. Image Source Also read: Cement prices witnesses 3 to 5% increase on monthly basis in Jan

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..