Cement demand in Bangladesh has been growing fast and potential is strong. However, in 2019 producers faced a number of setbacks, added to which now is the COVID-19 impact. By EBL Securities Ltd, Bangladesh.
From unfavourable tax measures to escalating raw material prices, intensified competition, price wars, the weakening taka (BDT), slowing demand and increased cost of borrowing, nothing seemed to be working in favour of Bangladeshi cement manufacturers in 2019. During the year the US$3bn cement market posted a mere six per cent YoY growth in demand against an imposing 15.5 per cent advance in 2018. Cement exports also slowed as only US$10.41m worth were exported during the FY18-19, compared to the US$12.59m earned a year earlier, with India being the main destination.
