It has been a month since the 7.7 magnitude earthquakes in Myanmar and Thailand caused a significant loss of life and devastation in the region. Dr Charlie Than, Union Minister for Industry, held a meeting with the Myanmar Cement Association on 10 April to invite foreign experts and import the necessary equipment to restore the damaged cement plants. Of Myanmar's nine cement plants in the Mandalay region, five were destroyed by seismic activity and the ensuing shortages of cement supply have triggered a surge in cement prices.
According to local reports, the nine cement factories, damaged in February, account for more than 6.3Mta of Myanmar's cement production. Total local domestic cement production capacity in the affected area is estimated at about 8Mta with local market demand at approximately 10Mta, according to reports in The Global New Light of Myanmar. When all the country's factories are operational, they have the capacity to produce over 16Mt of cement, according to U Than Zaw Htay, Managing Director of No 1 Heavy Industries Enterprise and No 2 Heavy Industries Enterprise under the Ministry of Industry. But domestic plants have produced less than 8Mta in recent years. The Global Cement Report, 15th Edition, states that cement production was estimated at 7.86Mt in 2023 and domestic consumption totalled 8.4Mt.
Soaring cement prices
While the construction market awaits the rehabilitation of damaged local cement plants, cement prices are set to soar. In Mandalay, the price for a bag of cement has already jumped from MMK18,000 (US$8.57) before the quake to MMK43,000 (US$20.48) and even at these prices, the commodity is in short supply. Moreover, the widespread cement shortages have led to price surges throughout the country. In Sagaing cement is generally on sale for MMK35,000-40,000 per bag. However, Shwe Taung Co is offering cement at a subsidised rate of MMK17,500 per bag at the No1 Basic Education High School in Sagaing, supply being restricted to township residents only.
In the meantime, some of the shortfall is being made up by imports from neighbouring countries. At Shweme Port in Shwepyitha Township, Yangon region, 3010t of cement were quickly offloaded and distributed on 18 March, with similar deliveries expected weekly for the foreseeable future. These imports have arrived from the border area at Rangong, Thailand.
The importance of these cement deliveries was underlined by the visit of Union Minister for Industry, Dr Charlie Than, to the Max Myanmar cement plant in Nay Pyi Taw Union Territory this week. The plant suffered a slight tilting of the kiln, transformer oil leakage and damage to the kiln rollers due to the violent tremors and aftershocks. Inspection work and prompt repairs enabled the plant to continue service from 3 April, with a total of 10,150t of cement sold to date.
There have also been local reports of profiteering. Some Alpha-branded cement bags arrived at the retailers but were not distributed after retailers preferred to stock levels, so they could sell at a later date when the prices had risen further.
Government reaction
In addition to imports of cement, the government's response has been to allow the import of coal to boost domestic cement production at the factories unaffected by the earthquake. Ministers want the plants to work at full capacity and with the road infrastructure mainly intact, fuel deliveries can get through. A total of 19 cement plants, comprising 16 private and three state-owned companies are still in operation.
In the aftermath of the destruction, the Vice-Senior General, Soe Win, has given the Ministry of Construction instructions that future high-rise buildings must be able to withstand magnitude eight earthquakes.