Price fall of clinker abroad leaves no impact on local mkt
Our Correspondent | Monday, 2 March 2009
CHITTAGONG, Mar 01: Despite decline in price of clinker in the international markets, the price of cement has not yet reduced in the local markets.
Earlier, price of cement increased in the local markets when the price of clinker, the main requisite for manufacturing cement, rose in the international markets.
Sources informed, the cement manufacturers raised prices of their produces even before the use of the high-priced clinker and thus amassed huge profit. But with reduction in price in the international market down to 35 to 45 per cent, price of cement has not been reduced proportionately yet.
Clinkers are generally imported from China, Thailand and Indonesia and C&F value of clinker rose up to US $72 to 75 per tonne. It has now declined to US $42 to 45 but there is no positive implication of the reduced rate on price level of cement in the local markets.
Developer companies and those who are constructing houses and other establishments are not getting benefit as they are still compelled to buy cement at the enhanced rate. Cement manufacturers have not reduced the price on different pleas including load shedding and power shortage.
Bangladesh Cement Manufacturers Association sources said, though expense on clinker has been reduced a bit but expenditures on other heads have increased. Besides, valuation of Bangladeshi taka against US dollar has decreased and as such cost of clinker import has risen.
Earlier, price of cement increased in the local markets when the price of clinker, the main requisite for manufacturing cement, rose in the international markets.
Sources informed, the cement manufacturers raised prices of their produces even before the use of the high-priced clinker and thus amassed huge profit. But with reduction in price in the international market down to 35 to 45 per cent, price of cement has not been reduced proportionately yet.
Clinkers are generally imported from China, Thailand and Indonesia and C&F value of clinker rose up to US $72 to 75 per tonne. It has now declined to US $42 to 45 but there is no positive implication of the reduced rate on price level of cement in the local markets.
Developer companies and those who are constructing houses and other establishments are not getting benefit as they are still compelled to buy cement at the enhanced rate. Cement manufacturers have not reduced the price on different pleas including load shedding and power shortage.
Bangladesh Cement Manufacturers Association sources said, though expense on clinker has been reduced a bit but expenditures on other heads have increased. Besides, valuation of Bangladeshi taka against US dollar has decreased and as such cost of clinker import has risen.