Tuesday, June 18, 2024


Dhaka Tribune

Raw materials import for cement on the rise

Update : 04 Sep 2022, 06:27 PM

Import of raw materials used to produce cement locally increased in recent months despite their price hike. 

This in turn caused manufacturers to raise the price per bag of the binder, who blamed it on the US dollar rates against the weakening Taka.

Some 5.12 million tonnes of clinker, granulated slag, limestone, gypsum and fly ash were imported in July and August of the ongoing FY23.

These were worth Tk2,303.84 crore, 34% more than what was brought in the same period of the previous fiscal.

Clinker, the main raw material, cost $62.14 per tonne on an average in August.

The price has effectively gone up 17.5% year-on-year.

The price of 50-kilogram bags of every brand has been raised by Tk50-70 in the span of a month to currently sell for Tk470-510.

The exchange rate hit Tk95 per US dollar on the interbank platform in early August.

Over the past one year, the currency of Bangladesh depreciated by 12.02%.

According to Bangladesh Cement Manufacturers Association, there are 37 active cement factories in Bangladesh and more than Tk30,000 crore has been invested in the industry.

Manufacturers have a combined annual production capacity of 58 million tonnes against a local demand of 33 million tonnes.

According to Chittagong Customs, some 30-35 million tonnes of raw materials are annually imported, mostly from Thailand, Vietnam and China, through Chittagong and Mongla ports.

The import volume has gradually increased, doubling in the past five years.

Around 36.1 million tonnes of raw materials were imported last fiscal year.

In FY18, it was about 16.8 million tonnes.

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