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The Cement Market In Recession

Economy group- Although the cement industry has localized for years and the Bojnoord need for cement is provided in domestic but for a while, the recession also has entangled this industry by standing still the constructions.

The Cement Market In Recession

The head of Bojnoord’s Building Materials Union told to our reporter: during two years that the market remains in recession, the gypsum price has not more changed, but the cement price ranges from 72000 Rials to 65000 Rials, however, the Bojnoord factory is forced to produce due to competition with neighboring factories. Mr. Kamali added: the neighboring factories supply their productions lower than the Bojnoord’s cement prices, if we want to buy the jovein cement in these conditions and supply it in Bojnoord, we will be able to sell it in 53000 rials, but in order to support of domestic productions along with implementing resistive economy, we buy the province productions although with higher price and quality and supply them. He continued: now by the discounts that the Bojnoord cement factory is considered for Shaban feasts, the cement price has decreased from 68000 rials to 65000 rials that it may supply to previous price after these feasts. He stating that the buying and selling in the cement market is about zero, continued: since the beginning of the year till now the six license revocations have done due to high shop renting and low income. He also added: lack of affordable housing facilities and high bank interests are among effective factors in construction recession and consequently building materials market, so that now some developers prefer to deposit their capital in banks than cost in constructions. According to him, the existing materials in storehouses has gone and spoiled due to market recession.

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