Steel prices increased in Bangladesh

On Thursday, Chattogram Customs House increased the assessment value from 17 per cent to 42 per cent. Therefore, the amount of duty imposed on products increased by Tk 5,000 to Tk 15,500 per tonne. Officials reported that customs stations across the country began applying the new rates as of Sunday.

Following the announcement, steel prices increased by Tk 5,000 to Tk 15,000 per tonne, traders said. Traders expressed concerns about the new assessment value, stating that it was 10-15 percent higher than the actual price. For this reason, they are concerned that the sales of products imported with reduced taxes may increase in the open market and this may create instability in the steel market.

According to the new assessment, the previous value of secondary hot-rolled steel used in automobiles, electrical appliances, construction materials and steel pipes was $400 per ton. Now it has been increased to $570, which means a tariff increase of 42 percent and the amount of duty on the product increases from Tk 16,000 to Tk 22,000 per tonne.

Similarly, the price per ton of cold-rolled secondary steel used in the construction of beams, structures, columns, steel hangars, industrial buildings and garages has now been increased to $650 from $520, which is an increase of 25 percent.

Due to regulations, the assessment rate for other steel products such as coated steel, zinc-plated steel and stainless steel increased from 17 percent to 42 percent.

Bangladesh consumes 20-22 lakh tonnes of steel products every year. According to data from the National Board of Revenue, 88 percent of this amount is imported by industrial facilities and the rest by commercial importers. Currently, revenue collection from the sector varies between Tk 500 billion and Tk 600 billion. With these revenues increasing, an increase of Tk 100-150 million is expected.

Importers in Dhaka and Chattogram reported a price increase of 5 to 12% for all types of steel following the implementation of the new assessment value.

Omar Faruque, owner of MK Trading in Dhaka, said hot-rolled secondary grade steel, which was earlier sold for Tk 1 lakh to Tk 1.02 lakh per tonne, now costs Tk 1.1 lakh. Likewise, the price of cold-rolled steel also increased from Tk 1.12 lakh to Tk 1.20 lakh per tonne.