The price of 75-grade mild steel (MS) rods in Bangladesh has fallen from T k95,000 (USD 799) per ton in July to Tk 80,000-82,000 (around USD 673-691) per ton now.
This drop in prices has put significant financial pressure on producers for grade 75 rods, which cost Tk 95,000 (USD 799) per ton to produce. Industry experts say that companies have suffered losses of up to Tk 15,000 (USD 127) per ton, with raw material costs rising due to the exchange rate hike and ongoing energy shortages. Many producers have reduced production volumes or ceased operations due to the decline in demand, especially in government and private construction projects.
The sector, which produces millions of tons of steel annually and plays an important role in the country's economy, has been affected by a number of challenges, including political uncertainties and rising financing costs. However, the industry continues to grow, and demand is expected to increase in the future with advancements in technology and infrastructure projects.
Manufacturers are being advised on cost-cutting strategies, such as improving production efficiency and purchasing raw materials at discounted prices. The resumption of major construction projects and favorable government policies could help the steel sector recover and improve the country's economic outlook.
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