JAGARAN CHAKMA

Steel rod prices have fallen below Tk 90,000 per tonne for the first time in more than three years, as construction demand continues to fall amid reduced government spending and economic uncertainty.

The retail price of 60-grade mild steel (MS) rod, widely used by construction sites and infrastructure projects, dropped 12 percent year-on-year last week to between Tk 85,000 and Tk 89,000 per tonne, down from Tk 97,500 to Tk 99,500 a year ago, according to Trading Corporation of Bangladesh (TCB) data.

Prices are now lower than they were on March 23, 2022, when a tonne sold for Tk 91,500. At its peak in mid-2024, the price neared Tk 1 lakh.

Before the political changeover in August last year, the country consumed around 6.5 lakh tonnes of MS rod each month, according to the Bangladesh Steel Manufacturers Association (BSMA). Since then, demand has steadily declined to about 4 lakh tonnes in recent months, a drop of roughly 35 percent.

BSMA said public construction and large-scale government projects, which usually account for nearly two-thirds of domestic steel consumption, have been in consistent decline since July last year.

“In just minutes, the price dropped 9 percent on July 27 this year. In such volatility, running a business is very difficult,” said Sumon Chowdhury, secretary general of the BSMA.

Chowdhury said domestic demand has almost disappeared. “It is a major concern for the industry,” he said, citing the lowest Annual Development Programme (ADP) implementation in 49 years as a key factor behind the slump.

He added that smaller producers such as Bandar Steel and Mohammadi Steel have suspended production due to limited access to bank finance. “Many mills cannot survive under current conditions,” said Chowdhury.