Steel manufacturers in Bangladesh have issued a five-point demand to the interim government, urging swift action to mitigate the challenges threatening the industry.
Their demands, announced during a press briefing yesterday, aim to address issues ranging from capital constraints to infrastructure bottlenecks.
The press briefing was jointly organized by the Bangladesh Steel Manufacturers Association (BSMA), Bangladesh Re-Rolling Mills Association (BRMA), and Bangladesh Steel Mill Owners Association (BSMOA) at the Economic Reporters Forum in Purana Paltan.
Key demands include acceleration of infrastructural development, increasing single borrower exposure limit, uninterrupted gas and power supply, revising certification mark licence fee and stopping duty-free steel imports.
Md Mahbubur Rashid Jewel, the BRMA’s general secretary, said the steel sector is grappling with rising production costs driven by higher fuel oil, gas, and electricity prices. Disruptions in gas and power supplies have further aggravated the situation.
Adding to the crisis, the appreciation of the US dollar has led to a severe shortage of working capital. According to Chowdhury, companies are increasingly reliant on bank loans but are struggling with high interest rates.
Md Shahidullah, Managing Director of Metrocem Ispat, revealed that steelmakers are selling products below production costs just to cover overhead expenses. “The steel industry is facing an existential crisis,” he said, highlighting a 40% drop in steel sales over the last four months.
