Description

The global steel demand returned to growth in 2016, after weak global demand for steel in 2015 caused a slight contraction in crude steel production worldwide. The global steel industry, second in size only to oil and gas, produced 1630 million tons of steel in 2016 and has an estimated turnover of 900 billion USD per year. Bangladesh is gradually growing its steelmaking capacity, enhancing product quality and remolding its domestic steel industry while shifting away from the hazardous ship breaking industry. With per capita consumption of steel at 26 kg, the country’s domestic steel industry stands an immense opportunity to flourish. The government projects account for nearly 40 percent of total steel consumption. The country’s steelmaking on a tremendous rise, in line with demand. As per industry participants, more than 4.0 million MT steels are currently produced in the country roughly worth BDT 300 billion. 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 market participants. The government is aggressively undertaking infrastructure projects which are pushing demand upwards. The global steel industry is going through a slowdown, but the picture in Bangladesh is the opposite, with the sector registering 15 percent growth in 2015 riding on large infrastructure projects