Industries Minister Nurul Majid Mahmud Humayun Tuesday said demand for steel is expected to reach 15 million tonnes per annum (MTPA) by 2027 due to the ongoing boom in infrastructure development.
Besides, the cement industry will also require 25 MTPA of clinker by the same period.
Procurement of raw materials for these industries will be the key challenge in the future to sustain the country's economic growth, he said.
He also said that international as well as regional cooperation is unavoidable to maintain sound supply of raw materials.
The comments were made at the inaugural ceremony of the two-day "4th Bangladesh International Trade Summit 2024," organised by 'BigMint,' at a city hotel.
Bangladesh Partner of 'BigMint' Dilshad Ahmed chaired the session while and founder of PHP Family industrialist Sufi Mohammed Mizanur Rahman, Norwegian Ambassador to Bangladesh Espen Rikter-Svendsen and BSRM Managing Director Aameir Alihussain spoke as panelists.
General Secretary of Bangladesh Steel Manufacturers Association Dr Suman Chowdhury gave vote of thanks..
The minister said Bangladesh's economy is imbued with potential, dynamism and resilience.
It is one of the fastest growing countries in the world in term of GDP with an average growth rate of 7.0 per cent, he said.
The country is now taking a futuristic approach through embracing sustainable solutions for industries and power generation.
He said steered by progression in infrastructure, construction and shipbuilding, the steel demand is expected to touch 15 MTPA by 2027.
The cement industry, with its stable growth, is actively exploring opportunities to meet its clinker demand of 25 MTPA, he said.
While challenges for procurement of raw materials in the steel and cement industry necessitates imports, it also presents Bangladesh a bigger opportunity for regional collaboration, he said.
He also pointed out that the 26k MW power sector of the country is mostly dependent on non-renewable sources, though it has started its journey for swift transition into clean and green energy.
Espen Rikter-Svendsen said Bangladesh is the key player in the ship breaking industry in the world.
Bangladesh, India and Pakistan jointly capture 90 per cent share of global ship breaking and recycling.
The ambassador said his country is working with Bangladesh to ensure a safer recycling industry following the Hong Kong International Convention 2009 and the International Maritime Organisation (IMO) Guidelines for ship breaking.
PHP founder Sufi Mohammed Mustafizur Rahman while inaugurating the Summit, said is steel the backbone of the modern civilization.
He expected that this international summit would help raise steel industry's quality, enhance value additional as well as could explore market.
Dr Sumon Chowdhury, said the country's steel industry has already oversaturated as the production capacity reached 11 MTPA when demand is maximum 7.0 MTPA.
He said investors should do a market analysis before coming to the sector newly.
The minister while presenting the keynote informed that 500 representatives of steel, cement, power and ship breaking industries sector from around 20 countries are participating in the summit.
Representatives of about 25 countries including the United States, Germany, Belgium, Italy, Vietnam, Australia, India, Austria, Taiwan, China, Japan and Bangladesh have been participating in the summit, said organisers.
Domestic companies including PHP Family, BSRM, Rahim Steel, Abul Khair Group, KDS Group, Salam Steel, ZSRM, CSRM, Korea's POSCO, Japan's Sumitumu Corporation, Mitsui, Germany's Henkel, Bado Moller, Electrotham, Boomer and various Chinese companies are also participating in the show.
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