Bangladesh cement industry posts record sales in 2018 amid challenges

despite various internal and external challenges, cement manufacturers posted the highest ever single-year sales in 2018, on the back of rising consumption of the key construction material in rural areas and development projects, said industry people. “2018 was definitely a good year for us. There is no doubt,” said MdShahidullah, vice president of the Bangladesh Cement Manufacturers Association. He said cement sales stood at about 33 million tonnes in the year, the highest on record, much ahead of about 30 million tonnes seen in recent years. Consumption grew 12 percent in 2018, way ahead of 8 percent to 10 percent average annual growth recorded in the last decade, said Mr Shahidullah, also the managing director of Metrocem Cement Ltd, a manufacturer and exporter. He credited the increasing demand from individual homebuilders, mega projects, and rebounding real estate for the growth. The growth in the industry came despite various internal and external challenges. Mr Masud Khan, chief executive officer of Crown Cement Group, another manufacturer and exporter, said that all the big cement grinders have been adding capacity in the past two years and this is still continuing, leading to an excess grinding capacity compared to demand which is seeing downward pressure on prices. He said raw material prices increased in 2018 sharply compared to the previous year. Clinker price skyrocketed due to the scarcity of supply from Vietnam, Bangladesh's major source of the raw material needed to produce cement.