Following the devastating Sagaing earthquake that caused widespread building damage across Myanmar, cement prices have surged dramatically in the market. While the current market price for cement has exceeded 40,000 kyats per bag, the military council’s vice chairman Soe Win has issued an order setting the price at 17,000 kyats per bag. This price control measure was announced during the National Natural Disaster Management meeting in Naypyidaw, and orders have been issued to relevant cement factories to comply with the new pricing structure.
In Yangon’s current market, high-quality cement is selling for over 40,000 kyats per bag, with extreme demand leading to widespread shortages in the market. Construction material shop owners in Yangon report significant difficulties in obtaining cement supplies, stating that they can only secure the needed quantities by paying above market prices. The situation is even more severe in Mandalay, where cement prices are reported to be higher than in Yangon. The supply shortage has created significant challenges for construction projects and retailers across the country.
The military council has taken legal action against 62 shops and 8 shop owners for allegedly selling cement above the prescribed price limits. Following inspections of 320 construction material shops across major cities including Naypyidaw, Yangon, Mandalay, Bago, Sagaing, and Shan State, authorities have targeted shops charging 10-15 percent above purchase price (30 shops) and those charging more than 15 percent markup (32 shops). The council has specifically named several business owners, including Soe Tint Aung of Pyisone Aung Construction Materials Shop in Taunggyi, among those facing legal action.
The March 28 Sagaing earthquake has significantly impacted cement production facilities across Myanmar. Currently, only six out of nine cement factories nationwide are operational, with a total daily production capacity of 342,000 bags. While the military council claims to be working on increasing production capacity at the cement factories, current output remains insufficient to meet market demand. The significant gap between the controlled price of 17,000 kyats and the market price of over 40,000 kyats reflects the severe supply shortage and increased demand following the earthquake damage, creating challenges for both consumers and businesses in the construction sector.
