the Middle East is having a profound impact on Bangladesh's cement industry. Mohammed Abdul Rahim, general manager of Diamond Cement Marketing, pointed out in an interview that since the US-Israel joint attack on Iran on February 28, the cement market in Bangladesh, which relies heavily on imports of raw materials from the Middle East, has been under tremendous pressure, facing not only cost-driven price increases, but also a sharp contraction in demand. The soaring import cost of
raw materials is the direct driver of price increases. In the first week after the start of the war, the price of the core ingredients of cement, including limestone, gypsum and clinker, rose by $10 to $15 per ton, Rahim said. These raw materials are mainly shipped from the port of Jebel Ali in Saudi Arabia, and the war has strained the supply chain and hindered transportation. At the same time, the domestic fuel crisis has pushed up logistics costs. Due to the shortage of refined oil supply, truck and van drivers who transport cement over long distances have to stop at many places to buy oil, forcing them to demand additional freight compensation, which is ultimately passed on to cement prices. Although the government has not raised the official oil price, the actual operation of the supply system has led to a large increase in hidden costs. At present, the price of each bag of cement has risen by 20 to 30 Taka, but Rahim admitted that the actual increase in production costs can not be fully absorbed by the price increase.
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