HOUSE OF THE WEEK
Unfinished project in South Okkalapa tsp
THIS two-storey house in South Okkalapa township represents unfinished business. more
Cement prices approach seasonal highs
(Volume 26, No. 512)
Workers at the Shwe Myittar cement shop in Sawbwargyi Gone unload bags of Diamond cement.
A BREAKDOWN at a major factory and seasonal demand are the factors behind recent escalation of cement prices, a number of industry sources said last week.
Supplies of the Kyant brand cement, produced at the Myainggalay factory in Kayin State, have dried up since the factory ground to a halt in early January, one source close to the factory said.
U Khin Maung Win, owner of Shwe Myittar cement shop at Sawbwargyi Gone complex in Insein township, said prices of imports and local brands have been increasing since the start of the year as supply has run short.
“The imported Diamond and Elephant brands are hard to find in the market,” he said.
The difficulty of finding those brands is reflected in the price per bag compared with those at the start of the year, he said.
“At the start of January a bag of either brand cost about K5500 but is now K8000,” he said. However, in February last year the cement price was nearly K8000 per 50-kilogram bag, he said.
“Prices will continue to rise until the end of April. And even if they drop after that I don’t think they will go below K7000 a bag, although that depends on whether enough supplies are imported.”
U Tun Lwin, managing director of Shwe Me company, which imports Elephant cement, said accelerated construction in Nay Pyi Taw was fast swallowing supply.
“Before work began in Nay Pyi Taw there was always plenty of locally produced cement in the market and few imports. But when the building of the capital began domestic supplies were quickly exhausted and people had to import.
“Our factory [Elephant] in Thailand could only produce 40,000 tonnes per month in January and February because it was undergoing maintenance as well. It can normally make 80,000 tonnes,” he said.
U Than Aung, managing director of Diamond Double Star, which imports Diamond cement, said domestic cement supply hinged on the Myainggalay factory, but current production is only 4000 tonnes a day, much lower than demand.
U Ko Ko Lay from Meik Swe Myar construction material shop in South Okkalapa township confirmed the price rises for imports over the past month.
“Bags of the major imported cements have increased from K5800 to K7400,” he said, adding that prices last year hit highs of K8300 a bag. He said he was hopeful that they wouldn’t hit those levels this year but added that that was dependent on whether enough was imported at the right time.
