Bangladesh’s steel production fell sharply in September compared to last year due to lower demand and price cuts. The local steel sector has been affected by political unrest across the country, prompting warnings from major suppliers such as Bangladesh Steel Re-Rolling Mills Ltd (BSRM) and Anwar Ispat.
As mills incurred losses on every ton produced, many have opted to shut down operations. BSRM’s Deputy Managing Director noted that producers are now selling products below production costs to cover basic expenses.
Public construction, which represents around 67% of local steel demand, has halted since July due to the political upheaval, leading steel manufacturers to cut prices by nearly Tk 6,000-6,500 (about USD 54-59) per ton. Currently, 60-grade mild steel (MS) rod is priced at Tk 93,000 (approximately USD 832) per ton, down from Tk 99,500 (around USD 908) just a month ago.
Sales among local steelmakers have dropped to 150,000 tons per month, down from over 500,000 tons. Challenges such as high inflation, raw material shortage, and the depreciation of the local currency against the USD have further exacerbated the crisis.
Nearly all mills have reduced production by at least 60%, facing significant financial strain. While BSRM’s Deputy Managing Director remains hopeful for recovery, Sumon Chowdhury from the Bangladesh Steel Manufacturers Association expressed skepticism, noting that public sector demand has plummeted nearly 70% amid ongoing political instability. The local steel market, with about 200 players and a production capacity of 11 million tons, is grappling with unprecedented challenges.
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