Bangladesh: Cement producers have rejected claims by the US Trade Representative over alleged overcapacity in the sector, stating that production reflects domestic demand driven by infrastructure projects and economic growth, according to The Daily Star. The comments come amid a US trade investigation into Bangladesh and more than a dozen other countries, reportedly examining whether their policies and production practices contribute to global overcapacity that could harm American manufacturing. In its complaint, the US cited unused capacity in Bangladesh as evidence of ‘unfair trade.’
The Bangladesh Cement Manufacturers Association said that the country has 41 plants with a combined capacity of 86.0Mt/yr and domestic demand of 39.8Mt in 2025, up by 6% year-on-year. The country exports a minimal amount of cement, with around 20,000t/yr going to India. The association said that installed capacity reflects long-term planning and seasonal demand rather than overproduction. The deputy managing director of Fresh Cement Mohammod, Khourshed Alam, said that cement demand in Bangladesh has grown at an average annual rate of 8%, and that if this continues at the current rate, the existing capacity could be fully absorbed within eight to nine years.
Alam said “Bangladesh’s cement capacity should not be interpreted simply as overcapacity, as the sector is preparing for future demand in a growing economy. In a country of 170 million people with ongoing urbanisation and infrastructure development, production capacity must anticipate future demand.”
