Thursday, July 23, 2020

Steel Re-Rolling Industry in BD

The use of steel in the world gradually increases day by day. Now each and every part of civil constructions is made by a steel structure. due to the availability of scrap value or salvage value men are interested to build their own construction with steel structure. It is certain to increase steel and related products with steel enhance in the future. 

Bangladesh Steel industry is a stable industry as one of the important industrial sectors of the country. It consists of small up to the largest amount of steel melting and re-rolling factories across the country which mostly produce deformed bar rod of different grade (40, 60, and 500), angel, channel, and coil for the construction industry. Although the history of the Steel Industry is not an ancient one it can make a good future. Earlier than 1971 Bangladesh did not have any steel mill and even after the liberation there were only a few steel factories in the country. In the 1990s the tangible progress began in this sector through a revolution. During that period the building construction agencies or developer companies came forward to build modern infrastructure. Then with the increasing demand, new investors started investing in steel or rod production. Now, Bangladesh has more than 400 steel, re-rolling, and auto-re-rolling mills with a combined annual production capacity of 8.00 million tons, against the total demand of only 4.00 tones. The government of the country projects accounts for nearly 40.00% of total steel consumption. Though most of them are manual steel plants, 30 mills among them are automated. Large numbers of steel manufacturing companies have gained a reputation as a brand. Among them, BSRM, KSRM, Anwar Steel, AK steel, Rahim steel, RSRM, Basundhara steel, GPH Ispat, Abul Khair Group are worth mentioning.

Bangladesh is one of the lowest consumers of steel products in the World. Per capita steel consumption in Bangladesh now stands at only 25 kilograms, while it is 55 kilograms in India and 324 kilograms in the developed nations. Though many companies of the industry including BSRM, Abul Khair steel, GPH, RSRM, KSRM, Rahim Steel, and Basundhara Steel is manufacturing ms billet which is used as raw materials. Locally around 1.50 million tons are still imported each year. At present, three large steel producers such as BSRM, Abul Khair, and KSRM supply more than 50.0% of the country’s annual need for 3.50-4.00 million tons of steel, with BRM and AKS set to expand their capacity future. Besides the competition from big parties, the smaller mills are also facing challenges such as price falling in the international steel market and a decline in domestic demand for construction materials, lack of branding and promoting, and absence of advertisement which impact on the turnover and profitability of the small and medium scale companies and forcing them difficult to stay in the market. The overcapacity of the steel industry also indicates enormous export potential, though the option is yet to explore following some bottlenecks in the export process. Because steel demand is derived from other sectors like construction building, roads, consumer durables, and infrastructure, its fortune is dependent on the growth of these user industries. However, the initiation of Padma Bridge construction, acceleration of government’s big infrastructure projects under the annual development program, and revival of the local real estate industry will undoubtedly boots-up the steel consumption locally.

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