SteelOrbis had the opportunity to interview Imtiaz Uddin Chowdhury, Head of Supply Management for BSRM, one of the leading steel re-rolling mills in Bangladesh.
Regarding the macroeconomic position of Bangladesh, he stated, “The economy is growing and regarding steel, production is expected to double from present levels by 2022.” He added that due to the economic growth being encountered by the country, “the biggest challenge facing Bangladesh is logistics.” The domestic government is working to expand ports to facilitate imports, he said, and new facilities to manage larger vessels are expected within the next five years.
Regarding scrap imports by Bangladesh, Chowdhury noted that blast furnace mills are not an option for Bangladesh since raw material acquisition would be “very challenging” and EAFs will continue to demand scrap. He added that when HBI, an alternative to scrap, is above HMS pricing as it has been recently, then it becomes problematic to buy and scrap is preferred.
Upon inquiry of the effects of the One Belt initiative by China, Chowdhury replied that the investment is welcome and also being managed closely by the Bangladesh government. He remarked that the domestic steel market in Bangladesh is protected with high duties that in some cases amount to 82 percent and that billet, for example, faces a duty of approximately 40 percent, therefore making imports costly.
Additionally, Chowdhury estimated that Bangladesh has established about 100 economic zones throughout the country that are dedicated to China. The zones include incentives such as special pricing for land.