Economy
Fuel Costs, Dollar Crisis Drive Surge in Bangladesh’s Steel Market
The prices of mild steel rods in Bangladesh have spiked by approximately Tk4,000 per tonne in a mere two weeks. Manufacturers attribute this surge to increased fuel costs amid a gas supply shortage, rising raw material booking rates globally, and a decline in raw material imports due to the ongoing dollar crisis.
Steel mills report that 75-grade mild steel rods are now priced between Tk93,000 and Tk95,000 per tonne in the market, showing an increase from the pre-election rates of Tk90,000 to Tk91,000 per tonne.
The price variations among 75-grade rod brands include BSRM at Tk95,000, GPS at Tk93,500, and both KSRM and AKS at Tk93,000 per tonne. This marks an increase from the pre-election rates for these brands.
Industry insiders connect the price hike to a period of low demand and sales, coinciding with a lull in government projects post the January polls. Additionally, the steel sector faces challenges such as a gas supply shortage and increased production costs due to alternative fuel use.
Key stakeholders express concerns over the dollar crisis impacting imports, predicting a significant shortage of raw materials in the coming months. A rod trader highlights market volatility, linking it to alleged manipulation by a syndicate of rod manufacturing companies. The decline in imports of steel raw materials further exacerbates the situation, affecting scrap, plate, and billet prices.
The Bangladesh Ship Breakers and Recyclers Association reports a decline in the import of steel raw materials, contributing to the abnormal increases in prices. The current scenario raises apprehensions about the sustainability of the steel industry unless prompt measures are taken to address the challenges.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
