Cement prices likely to rise

Prices of cement are also set to increase by this week, which industry insiders say will raise the cost of public construction projects  and building homes. This is the impact of price hike of clinker, the main  raw material of cement, in the international market and freight on board  (FOB). The price of cement is going to increase by around 5 per cent as a form of commercial adjustment.

Now the 50-kg bags are being sold at Tk 390 to Tk 420 depending on the brand, meaning the price will reach Tk 410 to Tk 440. According to industry insiders, cement manufacturers will raise the price by Tk 20 each for 50-kilogramme (kg) bags of cement.

The price of steel, another major raw material of the construction sector, increased by 17 per cent in December. The retail price of 60-grade mild-steel (MS) rod rose to Tk 64,000 per tonne, up from Tk 54,000 in November and to Tk 61,500 in the corresponding period last year, data from the state-run Trading Corporation of Bangladesh showed. The price has remained unchanged.

Mohammed Amirul Haque, managing director of Premier Cement, said the price may increase in the coming days as the price of clinker in the international market was undergoing a rising trend since mid-January. He added that the cement sector gained 21 per cent growth in January this year compared to the same month in 2020. According to the cement manufacturers, the production cost of clinker has increased due to the increase in the price of fuel coal used in the manufacture of clinker in the international market. Industry insiders fear that the cement price expected to grow due to a healthy and thriving construction industry and cement prices can vary across many regions due to trade environments, input costs, and demand and supply, among other factors.