A spurt in demand for cement has sent prices soaring by over Kyat 1,000 in the past week, according to construction material suppliers in Rangoon.
“In the beginning of February, a 50-kilogram bag of Thai-manufactured Elephant brand cement was sold at Kyat 5,500 ( 5.5 US$). The price has now spiralled to over Kyat 7,050. Prices of other brands are up by over Kyat 1,000. Demand for cement is way too high,” said an employee of the Shwe Htoo Myat Construction Supply Store in Sawbwagyigon, Insein Township.
“Cement is flying off the shelf fast this week. So the price marks an upward trend. We are out of stock though we have not ordered for fresh stocks because we are watching the market situation,” an employee of Pyae-son Cement Store said.
Cement prices fluctuate depending on the activity in the construction business as well as on imported brands. It is difficult to speculate on how long the current prices will prevail, said employees of a Tamwe cement store in Rangoon.
A government construction worker in Rangoon speculated that the price increase for cement could have been triggered by the construction boom in Naypyidaw. “No change is noticeable in Rangoon construction business. In the capital, however, Max Myanmar, owned by U Zaw Zaw, who is close to the regime, is building two football fields,” he added. China has financed in cash the construction of two football fields at an estimated cost of over USD 3 million.
The domestic brands of cement selling in the market are Horse, Hippo, Flying-Horse, Kyawk-hse King Elephant, Horse Head, Tripple A, Tiger Head and Myanmar Diamond. Imported brands in the market include Power, Crocodile, Diamond, Elephant, CPI, Blue Line, and Mountain. It comes from Thailand, Malaysia and Pakistan.
Popular brands are Thailand’s Elephant, Diamond, TPI, and Hippo, a domestic brand.
“All brands do well given the high demand,” said a Shwe Htoo Myat employee.
In mid-April last year during the Thinngyan festival, cement prices soared as authorities shut down more than five cement factories in Mandalay division.
