Overview of Bangladesh Cement Industry

The Bangladesh cement industry grew by 15.49% in 2018, despite facing soaring raw material costs, rising interest rates, price increases for related products, overcapacity, and a weakening national currency. Consumers used about 31.3 million MT of cement in 2018.

Cement Exports

According to the Export Promotion Bureau, Bangladesh exported cement worth US$12.59 million in FY17–18, up from US$10.79 million the previous year. With India as the primary export market, export revenues increased by 16.68% year over year.

Market Growth

Bangladesh has one of the fastest-growing cement industries in the world. Over the past seven years, the sector grew at a CAGR of about 11.5%. Consequently, cement demand doubled from 14.6 million MT per year to approximately 31.3 million MT annually.

Challenges and Market Exit

However, not all global players succeeded in Bangladesh. UAE-based Emirates Cement and Mexico-based Cemex exited the market by 2016 after failing to establish a strong presence. Nevertheless, the industry continues to attract investment and expand rapidly.

Cement Production Capacity in Bangladesh

Cement companies have recently increased their production capacity dramatically due to numerous mega-projects, strong economic growth, and rising income levels. Although the industry faces overcapacity, market demand during peak season almost matches actual production capacity. By 2019, total cement manufacturing capacity is expected to exceed 65 million tons. However, effective capacity may be lower because of power supply interruptions and other operational limitations.

Total cement production capacity is expected to reach about 65 million tons by 2019.

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