Ain't going to happen with steel. The jobs return on steel is also quite poor for the capital investment (both threshold and ramp) required. All major companies worldwide have their hands full internally for the next cpl decades and if its a public company BD wants to create, thats even worse...hope I don't need to tell you why. BD private companies cannot afford the lag time in haphazard ROI of steel sector given the razor thin buffers your private sector has in the first place (Esp for capital intensive industry). You are better off promoting more value added manufacturing and import the steel from world market....threshold, ramp and jobs ratio is far better in those....even for purely internal consumption.
As usual, you are wrong in every count of your assessments. Please take your time to read carefully the content of an analysis on steel production in BD. It seems you are quite ignorant on the present status of the steel production capacity of BD.
Bangladesh Steel Industry Review
Bangladesh is one of Asia's leading emerging steel markets and has a growing need for raw materials and steelmaking technologies. The World Bank forecasts that average GDP growth in Bangladesh in the period from 2016 to 2018 will be 6.8%, which is significantly higher than that of many other emerging markets. The movement towards a progressive national economy strongly depends on the how construction materials specially steels related industries has evolved and such products are readily available. Fortunately, the country has a proud heritage for the art of steel making and shaping for a long time. Steel is a basic raw material for infrastructural development and multiple other uses.
The demand for steel will inevitably grow in line with the country's economic and infrastructural development. Major buyers of mild steel and re-rolled products include individuals, government and institutional buyers in the real estate sector. Implementation of the government’s huge infrastructural development plans have been driving the double digit growth rate in the country’s steel industry and the growth is expected to persist for the next two decades amid ambitious development initiatives by the government. Currently, in Bangladesh, there are more than 400 steel, rerolling and auto-re-rolling mills. However, most of the millers produce steel through conventional process of re-rolling ship cutting plates.
Classification of Steel: Steel producers manufacture steel in several shapes according to demand from end consumers. Based on shape, the steel industry in Bangladesh can be categorized into two classes of products: long steel (MS rod/TMT bar) and flat steel (mainly CI sheet and CR coil).
In Bangladesh most construction steel can be traced to local production of long products, most of it in reinforcing steel, commonly known as M.S. Rods. Long Steel products are used in all industrial sectors, particularly in the construction and engineering industries. Different Types of Long Steels Bars Rebar Merchant Bars Structural Beams Channels & Angles Tubes Oil country tubular goods (OCTG) Other tubular products Different types of flat products includes Plates, Hot Rolled Sheets, Cold Rolled Sheets and Coated Sheet. Steel stock from capital goods such as machineries and transportation vehicles are entirely imported. Corrugated galvanized roofing sheets commonly known as C.I. sheets are also produced in Bangladesh.
Production & Market Size: There is no exact year-to-year data regarding the production and market share of the steel industry of Bangladesh is available. However, according to the leading manufacturers,
more than 4.0 million MT steels are currently produced in the country representing a market value of BDT 300 billion roughly. The industry grew from producing a meagre 47,000 MT in 1971 to 4.0 million MT in 2015. The production of this sector is expected to double in 2022 by the industrialists. The country's annual demand for only “branded” MS rod is estimated at more than 2.5 million MT, where the country usually consumes over 1.7 million MT of branded (high quality) MS road or 70% of its annual demand in the peak season.
The increased production of steel industry, special in the long steel, can be signified by the increased amount of import of the raw-materials i.e. scrap materials and billet for the industry in the last few years. According to a leading local daily, import of iron scrap materials and billets in the FY2013-14 was 2.8 million MT, which increased to 4.43 million in FY2014-15 and 5.54 million MT in FY 2015-16. Industry leaders says, currently
the industry has been witnessing 5-7% growth from year to year and the industry is expected to enjoy more than 15% growth, once the country’s real estate sector revives from its present sluggish period.
Consumption: The demand for steel industry is mainly driven by two factor; one is the implementation of the government’s ADP plans and government's infrastructure building activities and the other is from the industrial and individual level demand especially for the real estate sector.
Currently, the government projects account for nearly 40% of total steel consumption. According to the local industry leaders, present per capita steel rebar consumption in Bangladesh is only 25 kg and this is expected to grow to 50 kg by 2022. Source: World Steel Association and EBLSL Research According to the World Steel Association, apparent steel consumption of the country was 2.7 million MT in the FY 2014 compared to 2.4 million MT in the FY 2013, posting 10.4% YoY growth.
However, According to the industry insiders, the annual steel consumption of steel (both graded and non-graded) products now stands at roughly 4.0 million MT for long products and 0.7 million MT for CR/GP sheet. Production capacity In terms of production capacity for both finished and semifinished (billet) steels Bangladesh is now self-sufficient. Presently, in Bangladesh, the combined annual production capacity for steel is more than 8.0 million MT.
Moreover,
major industry players are injecting fresh investment in this sector to enhance their production capacity to grab the potential of huge demand for the implementation of government’s gigantic infrastructure development plans. For the semi-finished steel melting production, only three big players in the industry Abul Khair (AKS), BSRM and Kabir Steel (KSRM) has more than 3 million MT of billet producing capacity now and total industry as a whole have the capacity to produce roughly 3.6 million MT of billet, representing 90% of total requirements.
