Bangladesh: Bangladesh’s cement industry is facing rising costs due to supply chain disruptions amid the conflict in the Middle East. Shipping disruptions in the Strait of Hormuz have reportedly increased freight and insurance costs, raising the price of imports, according to local press. Industry officials said that clinker and other raw material costs have increased due to around 90% of clinker being imported. Manufacturers are now resorting to sourcing clinker from China, Thailand and Vietnam at higher prices, instead of the ‘cheaper’ Gulf countries.
Mohammad Abul Mansur of Royal Cement said that transport costs have nearly doubled due to higher fuel prices and maritime risks. Despite these rising costs, manufacturers are unable to fully pass the burden on to consumers due to weak domestic demand.
Mohammad Amirul Haque, president of the Bangladesh Cement Manufacturers Association, said that the industry has faced ‘multiple shocks’ in recent years and many companies are continuing operations despite losses. He said that the current situation is not sustainable in the long term, and that a quick recovery in the market is unlikely.
