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.
