Bizdata Insights Main Logo

Double Crisis Plagues Ceramic Sector

Industry: Building Material, Ceramic

The ceramic sector in Bangladesh is currently facing challenges due to a shortage of dollars and a gas crisis. Manufacturers of ceramic products are encountering difficulties in opening letters of credit (LC) for importing raw materials due to a scarcity of dollars and also experiencing disruptions in production due to the gas crisis, leading to increased production costs.

Approximately 90% of the raw materials for ceramic products in Bangladesh are imported, resulting in a 30-35% increase in production costs due to rising dollar and gas prices. According to the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), the ceramic product market in the country is valued at around BDT 7,248 crores. Domestic companies currently hold an 81% share of the market, with tiles accounting for BDT 5,219 crores. The gas crisis has affected factories such as Excellent Ceramics and Excellent Tiles, leading to production disruptions and reduced sales. Furthermore, the dollar shortage has resulted in a decline in raw material imports, causing shortages in some factories. The BCMEA has called for the withdrawal of additional duties on tile production and sanitary products to provide relief to entrepreneurs. Additionally, they propose a 35% deduction in imports due to moisture in mineral soil, which is wasted during the production process.

Source for more details:

Related News

Steel Industry Faces Uncertain Future as Prices Remain High

June 6, 2023

Steel prices in Bangladesh are unlikely to decrease in the near future, according to industry experts. The budget for the upcoming fiscal year did not provide any benefits to the sector, and the cost of production has significantly increased.

BSRM Converts Steel Slag Waste into Eco-Friendly Construction Material

June 5, 2023

Bangladesh Steel Re-Rolling Mills (BSRM), the country's leading steel producer, has successfully transformed steel slag waste into eco-friendly construction material as an alternative to bricks. Steel slag, a solid waste generated during the steelmaking process, poses environmental threats and reduces land fertility when improperly disposed of.

Heidelberg Cement Net Profit Surges by 39%

June 4, 2023

Heidelberg Cement Bangladesh Limited has achieved remarkable financial results in Q1 of the current financial year 2022-2023. The company's net profit after tax soared by an impressive 39% compared to the previous year.

Berger Paints Recommends 400% Cash Dividend

June 1, 2023

Berger Paints Bangladesh, the country's top coating producer, has recommended a 400% cash dividend for the fiscal year ending March 2023. The company's consolidated profit increased by 4% year-on-year, reaching Tk301 crore. Its consolidated earnings per share also rose to Tk64.91 compared to Tk62.68 the previous year.

Ceramic Factories in Northern Struggle with Rising Production Costs

June 1, 2023

Ceramic factories in underdeveloped regions of northern Bangladesh are facing significant challenges as a result of the US dollar crisis and the absence of natural gas. The ongoing dollar crisis has led to a 40 to 50 percent increase in production costs for ceramic makers, as the required raw materials are not being imported due to difficulties in opening letters of credit.

PHP Begins Production of Decorative Glass

May 30, 2023

PHP Float Glass Industries, a subsidiary of PHP Family, has commenced the production of decorative glass at its Mirsharai facility in Chattogram. The company aims to meet the demand for stained glass, frosted glass, textured glass, and etched glass used in interior and exterior designs of commercial buildings, hotels, malls, and upscale residential projects.

Related News

Steel Industry Faces Uncertain Future as Prices Remain High

June 6, 2023

Steel prices in Bangladesh are unlikely to decrease in the near future, according to industry experts. The budget for the upcoming fiscal year did not provide any benefits to the sector, and the cost of production has significantly increased.

BSRM Converts Steel Slag Waste into Eco-Friendly Construction Material

June 5, 2023

Bangladesh Steel Re-Rolling Mills (BSRM), the country's leading steel producer, has successfully transformed steel slag waste into eco-friendly construction material as an alternative to bricks. Steel slag, a solid waste generated during the steelmaking process, poses environmental threats and reduces land fertility when improperly disposed of.

Heidelberg Cement Net Profit Surges by 39%

June 4, 2023

Heidelberg Cement Bangladesh Limited has achieved remarkable financial results in Q1 of the current financial year 2022-2023. The company's net profit after tax soared by an impressive 39% compared to the previous year.

Berger Paints Recommends 400% Cash Dividend

June 1, 2023

Berger Paints Bangladesh, the country's top coating producer, has recommended a 400% cash dividend for the fiscal year ending March 2023. The company's consolidated profit increased by 4% year-on-year, reaching Tk301 crore. Its consolidated earnings per share also rose to Tk64.91 compared to Tk62.68 the previous year.

Ceramic Factories in Northern Struggle with Rising Production Costs

June 1, 2023

Ceramic factories in underdeveloped regions of northern Bangladesh are facing significant challenges as a result of the US dollar crisis and the absence of natural gas. The ongoing dollar crisis has led to a 40 to 50 percent increase in production costs for ceramic makers, as the required raw materials are not being imported due to difficulties in opening letters of credit.

PHP Begins Production of Decorative Glass

May 30, 2023

PHP Float Glass Industries, a subsidiary of PHP Family, has commenced the production of decorative glass at its Mirsharai facility in Chattogram. The company aims to meet the demand for stained glass, frosted glass, textured glass, and etched glass used in interior and exterior designs of commercial buildings, hotels, malls, and upscale residential projects.

Shopping cart

0
image/svg+xml

No products in the cart.

Continue Shopping

BUSINESSMONITOR

Connect with


Dont Have Account? Please register Here