The Daily Star reported that the steel industry in Bangladesh is currently witnessing 50% drop in sales to 250,000 tonne, even though the annual demand for steel products is about 6 million tonnes in normal times, as the depreciation of taka against US dollar has hiked production costs at a time when consumers are unwilling to pay higher prices. The report quoted Bangladesh Steel Manufacturers Association Secretary General & Metrocem Steel Managing Director Md Shahidullah as saying that “Steel manufacturers opened letters of credit at rates of BDT 84-86 per US dollar six months ago but are now having to settle import bills by buying each greenback at BDT 108. We reduced production by 50% to bring down losses in the face of increasing costs. We are just trying to keep the factory alive while having to pay bank installments and workers wages.”He added “With this backdrop, the cost of raw materials has increased by 30% cent, which is quite abnormal and demand has vanished.”According to report, rebar in Bangladesh is priced at BDT 95,000-107,000 (USD 915-1030) per tonne in different districts, up 17% YoY
The Daily Star reported that the steel industry in Bangladesh is currently witnessing 50% drop in sales to 250,000 tonne, even though the annual demand for steel products is about 6 million tonnes in normal times, as the depreciation of taka against US dollar has hiked production costs at a time when consumers are unwilling to pay higher prices. The report quoted Bangladesh Steel Manufacturers Association Secretary General & Metrocem Steel Managing Director Md Shahidullah as saying that “Steel manufacturers opened letters of credit at rates of BDT 84-86 per US dollar six months ago but are now having to settle import bills by buying each greenback at BDT 108. We reduced production by 50% to bring down losses in the face of increasing costs. We are just trying to keep the factory alive while having to pay bank installments and workers wages.”He added “With this backdrop, the cost of raw materials has increased by 30% cent, which is quite abnormal and demand has vanished.”According to report, rebar in Bangladesh is priced at BDT 95,000-107,000 (USD 915-1030) per tonne in different districts, up 17% YoY
