Cement Industry in Bangladesh Faces Rising Costs

The cement industry in Bangladesh is going through hard times. The main reason is its strong need for imported raw materials. About 90% of these materials come from other countries.

Many key materials like clinker, limestone, gypsum and fly ash come from the Middle East. But the ongoing conflict in that region has made shipping slow and costly. This is causing big problems for factories in Bangladesh.

Bangladesh Cement Manufacturers Association says the industry is under pressure. Production costs have gone up by 30% to 40%. At the same time, production has dropped by 20% to 25%.

Cement prices in local markets have also increased. A 50kg bag now costs about BDT 470 to BDT 550 in cities. But demand is still weak. This makes it hard for companies to earn profit.

Fuel shortages are also adding to the problem. Diesel is needed to move raw materials and finished goods. When fuel is short, transport becomes slow and expensive.

The industry is also not working at full power. Many factories have the ability to produce more but they are not using it fully. Experts say production is much lower than normal levels.

There are 76 cement companies in the country but only 42 are active. Big brands like Crown Cement, Bashundhara Cement, Shah Cement and LafargeHolcim are still leading the market.

Industry leaders are asking the government for help. They want lower taxes and cheaper import duties on raw materials. They believe this can help reduce costs and support growth.

In the end, the cement industry is facing a tough time. Higher costs, weak demand and supply problems are making it hard for companies to grow. Experts say support and better planning are needed to keep the industry stable.