Brick prices spike on coal supply crunch, turmoil

Brick prices increased by up to 33 per cent in the country in the last few months following a supply crunch of coal and the increase in transportation costs amid the ongoing transport blockade, said sector insiders.
The surge in prices of bricks, one of the key construction materials, might lead to an upswing in construction costs both in the private and public sectors, they feared.
According to Banglad-esh Brick Manufacturing Owners' Association (BBMOA), a platform of 6,000 registered brick kiln owners, the industry needs to burn nearly 2.25 million (22.5 lakh) tonnes of coal each year to manufacture 9.0 billion (900 crore) bricks against the demand for 8.9 billion.
Dhaka region hosts 1,500 brick kilns that produce nearly 2.0 billion bricks annually, the BBMOA data reveals.
BBMOA president Mizanur Rahman Babul said prices of different types of bricks increased by 25 to 33 per cent due to the spike in prices of coal as well as transportation costs amid the ongoing transport blockade enforced by the BNP-led 20-party alliance.
Machine-made brick is now selling at Tk 9.5-10 per piece including transportation cost and handmade brick Tk 7.5-8.2 per piece in the country, marking a rise by Tk 2 over the last four months, he said.
A brick factory needs nearly 25 tonnes of coal to manufacture 0.1 million bricks. The country's brickfields meet 80 per cent of their fuel demand with imported coal, mainly from India, and the rest with the coal extracted from the Boropukuria coalmine in Dinajpur, he said.
The Indian government in last May imposed a ban on coal mining in Meghalaya state, the major coal supplier to Bangladesh, which pushed up import prices to Tk 22,000-24,000 per tonne here during the November-January period.
On the other hand, the government of Bangladesh reduced the coal import duty to 15 per cent from 31 per cent in December. But it had little impact on coal prices following the halt to imports from Meghalaya, he added.
BBMOA vice-president Asadur Rahman Khan said the brickfields start their operation in November and continue it until April.
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