Steel sector still in a shakeout
Consumption nosedives amid pandemic; situation will improve
hand in hand with economy, industry insiders say
Steel manufacturers registered around 40 per cent less turnover last year compared to 2019 as they were forced to sell finished products at lower prices in the face of low consumption, according to industry insiders.
The millers even had to offer additional commission for the dealers in order to make sure that they had enough liquidity to survive the ongoing coronavirus pandemic.
During the pre-pandemic period, the production cost of 60 grade MS rod stood at about Tk 58,000 per tonne. But in the April-June quarter, the millers had to sell it at Tk 50,000 to Tk 52,000 per tonne due to low demand, which prevailed until September-October, said Md Shahidullah, secretary general of Bangladesh Steel Manufacturers Association.