Steel Industry faces crisis due to rising scrap prices

PRAN-RFL Group, a leading business conglomerate, has signed a Memorandum of Understanding (MoU) with LafargeHolcim Bangladesh Limited (LHBL) to promote sustainable waste management for non-reusable materials. Under the agreement, non-biodegradable and non-recyclable waste from PRAN-RFL's food products will be managed at LafargeHolcim's Chhatak plant in Sunamganj, preventing environmental pollution. PRAN-RFL operates three recycling plants with a capacity of recycling 40,000 tonnes of waste annually.

GPH Ispat, a leading steel manufacturer, has won the SDG Brand Champion Award for the second consecutive year in the Responsible Production and Consumption category. The award recognizes GPH Ispat's commitment to sustainability and innovation. Senior officials, including Additional Managing Director Mohammed Almas Shimul, Executive Director Kamrul Islam, and Chief People Officer Sharmin Sultan, received the award from Syeda Rizwana Hasan, Adviser to the Ministry of Forest, Environment, and Climate Change, at a ceremony held at a city hotel.

Confidence Cement is initiating a rights offering to raise funds for its associate company, Confidence Cement Dhaka Limited, to manage increased investment costs. The company plans to issue one rights share for every three existing shares at Tk45 each, aiming to raise approximately Tk150 crore.

Bangladesh's steel industry faces a severe downturn, with a near 50% drop in demand over the past two months. This decline stems from a slowdown in construction projects due to political instability surrounding the fall of the Sheikh Hasina government. As new projects stall, demand for steel, particularly rebar, has sharply decreased, leading manufacturers to cut production by half and causing a 16% drop in scrap metal prices.

The Minimum Wage Board has established a Tk 12,000 monthly minimum wage for the cement industry, with a 5% annual increment. Published on August 22, 2023, the wage structure includes six grades, from Tk 12,000 for Grade 6 to Tk 31,260 for Grade 1. Apprentice workers will receive Tk 8,800. This is the first time the sector is under wage regulation, with a 14-day period for public feedback on the recommendations.

GPH Ispat plans to raise Tk242 crore by issuing rights shares at Tk15 each, with a Tk5 premium, to fund expansion and improve financial stability. The company will offer one rights share for every three existing shares. Shareholder approval will be sought at an extraordinary general meeting (EGM) on October 20, with a record date of September 18. The funds will support the construction of a new plant aimed at boosting production capacity and generating Tk450 crore in annual revenue. The company has experienced significant growth, with revenue increasing fivefold to Tk5,900 crore in FY23 due to its new plant and rising exports. GPH Ispat reported a profit of Tk64 crore for the first three quarters of FY24, rebounding from a loss the previous year.