Steel and cement output fell down by one-third

Bangladesh's steel production has sharply declined in September compared to last year, driven by a slump in demand and price reductions amid political unrest and uncertainty. Major suppliers like Bangladesh Steel Re-Rolling Mills Ltd (BSRM) report significant losses, with many mills shutting down their furnaces. Public construction and government projects, which account for about 67% of steel demand, have halted since the political changeover on August 5.

GPH Ispat, one of Bangladesh's top steel manufacturers, posted a net profit of Tk 85.64 crore for FY24, marking a 205% increase from the previous year and the highest in 15 years. The surge is attributed to strategic management of foreign currency exchange losses, which fell from Tk 232.5 crore in FY23 to Tk 79.31 crore. 

GPH Ispat Limited, a prominent steel manufacturer in Bangladesh, is set to issue preference shares to raise up to Tk500 crore for refinancing existing loans. This decision follows a previous plan to raise Tk242 crore through rights shares to enhance production capacity. The issuance of non-convertible, cumulative, redeemable, and non-participative preference shares is subject to approval from the Bangladesh Securities and Exchange Commission (BSEC).

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.

AkijBashir Group has launched a glass production plant in Madhabpur, Habiganj, to meet the rising demand for both basic and high-quality glass in Bangladesh’s construction sector. The company aims to produce highly transparent, defect-free glass for uses ranging from traditional windows to advanced infrastructure projects like malls and hospitals. Their products, launched in September, boast superior quality with a 700 ppm rating.

Steel demand in Bangladesh has plunged by 50% in the past two months, with monthly sales dropping from over 5 lakh tonnes to under 2.5 lakh tonnes. This decline is largely due to halted construction projects following the political upheaval that ousted the Awami League government in August. The public sector, responsible for 60% of steel consumption, has been severely impacted.