It is reported that about 300 steel re rolling mills in Bangladesh are on the verge of closure due to scarcity of raw materials.

Although price of steel scraps is declining in the international market because of global recession, price of MS Rod has been rising in the country due to shortage of scraps.

The shortage of scraps, the main raw material for the re rolling mills has been created for various reasons including scarcity of oxygen used in ship breaking yards.

Mr Abu Bakar Siddique general secretary of Bangladesh Re rolling Mills Association said that if the problems are not resolved soon re rolling mills of Narayanganj, Rupganj, Shyampur, Savar, Manikganj, Gazipur and Chittagong might have to be closed down.

He said that such massive closure of the re rolling mills would cause unemployment of up to one crore.

Mr Siddique said that ship breaking yards are the key suppliers of scraps but recently the High Court has directed the government to stop operation of all ship breaking yards, which run without environmental clearance.

(Sourced from Asia Pulse)