The prices of mild steel rods reached a 4-year low amid lower demand, driven by reduced government spending and private construction, according to manufacturers and traders.
According to data from Trading Corporation of Bangladesh, on Saturday, the price of 60-grade MS rods, widely used by construction sites and infrastructure projects, was Tk 83,000-86,000 per metric ton.
On the same date in October last year, the price was Tk 89,000 per MT.聽The prices of 60-grade MS rods were below 80,000 per MT in 2021, four years ago.
The manufacturers and sector professionals stated that due to stagnation in both government and private construction, rod prices have fallen to their lowest levels聽in recent times.聽
Tapan Sengupta, Deputy Managing Director of BSRM, the country鈥簊 leading rod manufacturer, stated that the country鈥檚 construction market is currently experiencing a slowdown, as demand has decreased by approximately 35 per cent.
鈥楾here are no major works underway right now, although many infrastructure projects remain pending. Once those projects begin to flow, the market will see some stability,鈥� he added.
BSRM produced steel about 907,480 metric tonnes in the financial year 2023-24 and secured about 25 per cent share in the country鈥檚 total demand.聽
Tapan Sengupta also pointed out that, with the seasonal factor of the monsoon having just ended, the onset of the dry season is expected to lead to a sharp rise in construction activities.
鈥榃ork in the dry season is always greater compared to other periods, and that is why we are optimistic that demand for steel rods will increase in the coming months,鈥� he added.
The price of 60-grade MS rods in October 2023 was Tk 99,000-105,000 per MT, which was about Tk 93,000 in October 2022 and Tk 76,000 in October 2021, TCB data stated.
The prices of 40-grade MS rod also witnessed a decline, selling at Tk 75,000-78,000 per MT on Saturday, compared to Tk 85,000 in October 2024, Tk 89,000 in October 2023, Tk 85,000 in October 2022, and Tk 70,000 in October 2021.
According to the Bangladesh Steel Mills Association, the production of MS rods has declined by 30-35 per cent in recent times.
BSMA Vice President Md Shahidullah said that the steel industry is facing one of its worst-ever crises due to a steep decline in infrastructure projects.聽聽
He also said that the mills were forced to incur a loss of over Tk 5,000 as the current production costs stood at Tk 88,000-90,000 per MT because the raw material prices remained unchanged in the global market.
They are forced to sell at a lower price to avoid blacklisting, loan classification, and default, he added.聽
According to聽the Implementation Monitoring and Evaluation Division under the planning ministry聽data, the interim government implemented only 2.39 per cent of its Annual Development Programme (ADP) in the first two months of the financial year 2025-26, a decline from the same period last year despite a shortened budget.
In July-August of FY26, a total of Tk 5,714.83 crore was spent from the development budget, which was Tk 7,143.08 crore, and the implementation rate stood at 2.57 per cent in July-August of FY25.
According to industry insiders, the interim government has put a halt to many mega projects initiated聽under the previous administration.
The BSMA has 37 members, although some have shut down their production, and a number of factories were operating at 60 -70 per cent of their capacity.聽聽
BSMA leaders also stated that demand in semi-urban and rural areas had been experiencing a declining trend.
Md. Abul Kalam, director of Bikrampur Auto Re-Rolling Mills Ltd., said that as the government project and private construction witnessed sluggishness, the demand for rods also decreased.
鈥榃hen the political stability arrives, the construction聽activities would also normalize, then the price would also rise,鈥� he added.
The activities in the real estate sector have also been sluggish for the past months.
Liakat Ali Bhuiyan, senior vice president of the Real Estate and Housing Association of Bangladesh, told 抖阴精品 that the real estate sector is also suffering in the current circumstances.
鈥楾he members are on a 鈥榞o slow鈥� due to declining sales and stalled projects,鈥� he added, saying that the implementation of a detailed area plan could accelerate the activities in the sector.
According to the BSMA data, the steel industry鈥檚 overall production capacity is around 11 million tonnes.
There are around 120 steelmakers in Bangladesh, with some 40 large companies dominating the market.
Bangladesh鈥簊 per capita steel consumption was 45 kg in 2022, and it is expected to increase to more than 45 kg by 2030, according to the BSMA.