January 9 - 15, 2006 Myanmar's first international weekly © Volume 15, No.299
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Sluggish construction market hits suppliers

By Htar Htar Khin
A construction worker clears the way for a new project.

ALTHOUGH the construction season has arrived, sales for building materials were down about 50 per cent at the end of December.

The prices of cement, bricks and iron bars had also fallen but hardwood prices went up a little, traders at Yangon’s largest hardware centre, Saw Bwar Gyi Gone, said.

Aung Myint Moh Construction Material Trading owner U Tin Win Naing said the arrival of imported cement from Thailand had resulted in local brands dropping slightly in price.

Cement sales fell by about 50 per cent last year compared with 2004 because of a sluggish construction market, he said, adding that the last week of December was particularly slow.

Those who could afford it preferred to by imported cement because of its perceived higher quality, Aung Myint Moh said.

Bricks were K50 a piece at the end of December, a higher price than usual because of the late end to the monsoon season, although the price was expected to fall early this month as more bricks arrived on the market, brick sellers in Dagon Myothit (South) township said.

The price of hand-made bricks decreased from K50 to K45 each last week as sellers sought to undercut the arrival of new bricks, Shwe Myanmar brick enterprise owner Ma Thet Thet Moe said. Machine-made bricks from Hmawbi and Danyingone brick factories were K60 a piece.

The price for one tonne of iron rods imported from China was K500,000, down from K600,000 three months ago. Locally-manufactured rods had also decreased to K450,000 from K500,000, a spokesman from Maung Weigh and Family construction company said.

“The prices decrease because there has been no demand since December and because Government constructions only use iron from the Myanmar Economic Corporation,” he said.

Hardwood prices, however, continued their rise of recent months. One tonne of ironwood (Pyin-Ka-Toe) was K480,000 in the first week of January, up from K450,000 in December, and Ein-Kanyin was K240,000, up from K230,000, Ywet Hla hardwood shop owner U Htay Lwin said.

“The prices are up because of less hardwood coming from Bago Division, and the high transportation charges,” he said.

 
 
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