Bangladesh Steel Manufacturers Association (BSMA) urged the government for reduction of all existing duties and taxes on scrap and sponge iron imports for local manufacturers. The demand came in a meeting of  BSMA and Bangladesh Association of Construction Industry (BACI) held aT FBCCI office. The meeting was apprised that in addition to the  hike in the prices of scrap and chemicals, the main raw materials of steel, container and ship fares also increased in the last two years. As a result, the production cost of rod has also gone up, having adverse impact on the country's construction sector. READ: BARVIDA asks for tax- free microbus imports and 45% depreciation facility Due to the increase in expenditure, the country's construction companies are struggling to implement development projects within the estimated budget. BSMA leaders informed, the price of rod produced in the country has logically increased due to increase in the price of raw material in the world market. At present, scrap costs 79 percent additional expense, resulting in overall production costs increased by 52 percent. In contrast, the selling price has increased by only 37 percent. According to the producers, the rod has to be sold at a loss in most cases as the selling price has not increased as compared to the increase in the price of raw material in the world market. Currently, the selling price of per metric ton rod is Tk 78,000 while the same in West Bengal, India, costs Tk 86,000, the BSMA leaders added. At the meeting, the steel producers said that if the construction companies were allowed to import rods, the domestic industry would suffer and a large number of people would lose their jobs. In such a situation, At the meeting, BACI leaders said that the government procurement rules-PPR and circular issued by the CPTU allow price adjustment in government projects. But most of the government-funded projects did not include price adjustment clauses in their contracts. As construction materials become more expensive, contractors are losing out. READ: Govt aims to recover imports as economy expected to accelerate over next three fiscals The Bangladesh Association of Construction Industries (BACI) has called for price escalation of government projects considering the rise in prices of raw materials. Chairing the meeting, the FBCCI President Md. Jashim Uddin called for resolving the problems in the construction sector through mutual cooperation and dialogue. Responding to his call, the meeting decided that the entrepreneurs of the two sectors would sit in discussion every three months. Mir Nasir Hossain, former president of FBCCI, joined the meeting virtually. FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, Director Engr. Ghulam Mohammed Alomgir, Secretary General Mohammad Mahfuzul Hoque, BSMA President Manwar Hossain and BACI President Shafiqul Haque Talukder were present in the meeting.

Bangladesh’s steel manufacturers have long been experiencing serious problems as the Chattogram Port Authority (CPA) is reportedly taking more time than usual in allowing them to unload their imported raw materials.   President of Bangladesh Steel Manufacturers Association (BSMA) Monwar Hossain in a letter to the CPA chairman on March 3 raised the issue expressing their grave concerns over it and demanded separate jetties for unloading their imported scraps, according to official sources.   He mentioned that the unusual delay in berthing the raw material-carrying ships made the situation horrible for their business.   “The mills are not getting adequate supply of raw materials to continue their production while the importers have to pay huge demurrage to shipping authorities for the excessive berthing delay,” he said in the letter.   “As a result, the price of raw materials for the steel-manufacturing industries is rising,” he added.   Also read: Realty sector hit as short supply pushes steel prices up   According to the BSMA, 58 vessels arrived at Chattogram port with about 1.328 million metric tons of scraps from September 2020 to February 2021 but each vessel had to face excessive delay in unloading the goods -- even up to 26 days.   Providing the statistics, the BSMA said the number of scrap-carrying ships is substantially rising, but the importers have to count huge costs due to the lack of adequate GI-berthing facilities at the port.    

Steel manufacturers expressed frustration over the proposed budget for the fiscal year 2020-21 saying that most of their proposals were ignored which they thought would not help overcome their crisis created after the coronavirus outbreak.

Ahead of the Finance Minister placing the national budget for the 2020-21 fiscal in Parliament, the country’s steel manufacturers have placed an 8-point list of demands, including extension of bank loan repayment date by 6 months, for which they wouldn’t like to see the central bank degrade their status as borrowers.