Steel Industry

 Steel Industry

Steel Industry

Steel industry is an established and growing industry in Bangladesh. Predominantly based in the port city of Chittagong, the industry has emerged as a major contributor to the national economy. According to the experts, the growth of steel industry in Bangladesh is mainly induced by the rapid expansion of the country"s ship-building, real estate sector and the major investments in various infrastructure projects throughout the country. Thus the domestic consumers of steel products include contractors, property developers, export processing zones, road and bridge construction companies, ship-building companies etc. The demand of steel is growing day by day due to the increased public works and some on-going large projects. Large players such as Abul Khair and BSRM are reported to have commissioned high-capacity induction and electric arc furnaces which would expand crude steel production significantly in Bangladesh. Scrap is a major raw material for steel smelting units based in Bangladesh. As a result, Bangladesh is believed to have the potential to become the second largest scrap importer in East Asia. The steel exporters of Bangladesh have ensured strong foothold especially in the African markets. The global steel industry has been going through an economic slowdown, however, the situation in Bangladesh is just the reverse, with the sector registering 15 percent growth caused by large infrastructure projects being undertaken by the Government of Bangladesh. The growth is expected to continue because of the Government"s increased spending on bridges and other major projects that requires this key construction material.