The ongoing USA – Israel and Iran war has significantly impacted Bangladesh’s construction sector, which is facing mounting pressure as the prices of key materials, particularly steel bar and cement, surge. Steel rod prices have spiked by BDT15,000/t (US$122/t), while cement has risen by BDT50 per bag in the past month. The surge is a direct result of escalating international fuel and freight costs, which have driven up prices of construction materials that rely heavily on imported raw inputs.
Manufacturers attribute the price hikes to unavoidable increases in import costs, raw material prices, and production expenses, according to a local media report.
The consequences are already visible. Rod and cement sales have plummeted by more than 30 per cent in the last month. Sales drops have been reported across the sector, with developers citing project delays and slowed construction activity due to soaring material costs.
S M Arifuzzaman, an agent for Confidence Cement (Green), stated that cement prices have risen from BDT470 to 520 per bag. In addition, rod prices have surged by over BDT16,000t. Sales have fallen between 30 per cent and 40 per cent as a result. Manufacturers attribute the hikes to rising import costs, especially for clinker.
Mohammed Amirul Haque, President of the Bangladesh Cement Manufacturers Association (BCMA), revealed that clinker import costs have risen from US$45 to US$55t. Despite aligning prices with production costs, the industry still faces pressure. BCMA data show that clinker accounts for 65–70 per cent of cement’s raw materials, and its price has recently risen by US$8–10t. The Iran-Israel war has also increased international shipping rates. Freight costs, especially for road transport within Bangladesh, have risen sharply.
Similarly, cement clinker imports rose to 2.13Mt in March, up from 1.73Mt in February, while import prices held steady at approximately BDT6,500/t. Including duties, the cost is around BDT12,000.
By Abdul Rab Siddiqi, Pakistan
