Demand for aluminium in Bangladesh real estate sector is on the rise, although at a slow rate

Building and construction sector has always been a key end user sector for aluminium industry in the Indian subcontinent. But while infrastructure has experienced a boom in rest of the region, the growth has been pretty sluggish in Bangladesh. This has had its impact on the country’s aluminium industry which logged a slow growth after having recovered from the real estate setback.

As per industry sources, Bangladesh aluminium industry grew at only four-to five per cent rate over the last two to three years compared to around 15 per cent growth it registered before real estate slowdown began in 2011. What contributed to this slow yet unusual growth? - The use picked up in the industrial sector and rural areas where opportunities remained largely unexplored until very recently.

Bangladesh construction sector started making use of aluminium in small scales just before the beginning of the new millennium. At that time there were only three or four companies which supplied aluminium construction materials, commonly known as Thai aluminium, to the market. The number has increased to nine over the years. Today, even people living in the rural areas are finding interest in the metal due to its durability, lightness, structural flexibility, contemporariness and cost-effectiveness.

The most commonly used aluminium construction materials include doors and window frames, partitions, swing doors and sliding doors, corners, signboards, and curtain walls. The key vendors in the domestic market are KAI-Altech group, Chung Hua Aluminium Industry Ltd and Bangladesh-Thai Aluminium Limited.

"Use of the products in rural areas is on the rise, contributing to the steady growth," KAI Bangladesh Aluminium Ltd deputy managing director Al Amin Murshed said, adding that the leading Bangladeshi aluminium companies are also expanding their product lines for the industrial and automobile sector.

{googleAdsense}

Chung Hua Aluminium's general manager S M Aslam said the nine companies presently operating in the aluminium construction materials market use their 95 per cent capacity on an average to produce around 25,000 tonnes of aluminium in a year in order to cater to the local demand. The companies source their raw materials and technology from countries like China, Russia, Malaysia, and Africa. A limited volume of their products is also exported to countries like Nepal, Bhutan , and Singapore.