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Recent political changes in Bangladesh have halted many government development projects, leading to a sharp decline in the private housing sector. As a result, sales of rod and cement have plummeted, with rod sales decreasing by 50-70% and cement sales dropping by 35-40% over the past two months. This decline has forced companies to reduce production levels.
Entrepreneurs in the steel and cement sectors attribute this downturn to the government change following a student-led uprising on August 5, which has resulted in project delays and contractors going into hiding. The current situation has created significant uncertainty among businesses, many of which are struggling to meet bank loan repayments.Currently, rod prices have fallen to between 86,000 and 87,000 Taka per ton, down from over 90,000 Taka in May-June, while cement prices have also seen a slight decrease. Many companies are facing substantial losses, with some at risk of defaulting on their loans.
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