Cement prices ease after spike

The price of cement, which recently experienced a sharp surge in the Maldivian market, has begun to decline, according to the latest market updates.

As of last Saturday, Villa Hakatha reduced its delivery price for a sack of cement in Malé to MVR 200. The company is also offering cement at a lower rate of MVR 184 per sack for direct purchases from Thilafushi.

Meanwhile, the state-owned enterprise STO has maintained its cement price at MVR 129 per sack. However, the company has announced that new orders will only be accepted after a five-day waiting period, effectively suspending the acceptance of new orders.

Despite the recent decline, cement prices reached record highs earlier this month. On April 1, a sack of cement was retailing for over MVR 300 in the Malé market. Prices, which typically range between MVR 140 and MVR 160, began increasing in March, rising to MVR 250 before peaking at MVR 313 for deliveries in Malé and MVR 302 from Thilafushi through Villa. During this period, STO reported a shortage of available stock.

Entrepreneurs have attributed the sudden escalation in cement prices to rising global freight costs associated with ongoing international conflicts, which have disrupted supply chains. These disruptions have also contributed to increased prices across a range of other imported commodities.

Notably, Maldive Gas, a subsidiary of STO, recently imposed a limit on sale of gas due to low stocks. However, the sale of gas cylinders has resumed to normal after the issue was resolved.