The price of steel products in Bangladesh is expected to remain high as the upcoming fiscal year’s budget fails to provide any benefits to the sector, according to a top industry executive. The cost of production has surged, leading to an increase in steel prices. Factors such as the strengthening US dollar, which has risen by about 30% against the taka, along with energy and power shortages, have contributed to the rising production costs.
Energy bills alone make up around 15% of the steel production cost. The global energy crisis and a shortage of foreign currency reserves have further compounded the challenges faced by the industry. The executive believes that the energy crisis will persist, potentially leading to an increase in steel prices. The sector had proposed a reduction in advance income tax and other tax adjustments, but the government did not address these demands in the budget. The steel industry in Bangladesh has been struggling with high energy costs, resulting in record-high prices for steel rods.
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