Local steel makers want to emerge as steel exporters to India's Seven Sisters
Wednesday, 23 June 2010
The local steel mills expects to start exporting their products to India, provided the government gives them policy support, reports UNB.
About 300 steel and re-rolling mills are now in operation across the country. Of those, some auto-steel mills were set up in the country in recent years with world-class automated and computerised machines which produce quality steel products.
All these auto and non-auto mills together can produce about 4.4 million tonnes of MS (mild steel) products.
But the domestic demand is about 2.2 million tonnes a year.
"We're now producing 50 per cent against our installed capacity," said Abul Quasem Majumder, general secretary of the newly formed Bangladesh Auto Steel and Re-rolling Mills Association (BASRM).
They noted that there is a growing market of steel products, particularly MS rod, in the seven sisters- Assam , Meghalaya, Manipur, Mizoram, Nagaland, Tripura and Arunachal.
He said if the Bangladeshi steel products are allowed to enter the Indian markets, they have the capacity to double their production.
"If we're allowed to export our products, we can easily earn upto $200 million a year. It will help reduce the huge trade gap with India," said the local steel maker.
Explaining their present business situation, the local steel makers said that among the Bangladeshi manufacturers, steel makers had experienced a major shock in the global meltdown in 2008.
"Many manufactures incurred huge losses. Some of them have even been compelled to shut down their manufacturing units," said Md Shahidullah, managing director of the Metrocem Ispat Mills Ltd.
"At that time, as the most affected sector, we deserved the government's stimulus package to revive our business. But, unfortunately, we didn't get that support", he added.
"Instead the government raised the duty of raw materials in the budget 2007-08. This time, again the government raised the tariff by 10-15 per cent in different categories in the new budget".
About 300 steel and re-rolling mills are now in operation across the country. Of those, some auto-steel mills were set up in the country in recent years with world-class automated and computerised machines which produce quality steel products.
All these auto and non-auto mills together can produce about 4.4 million tonnes of MS (mild steel) products.
But the domestic demand is about 2.2 million tonnes a year.
"We're now producing 50 per cent against our installed capacity," said Abul Quasem Majumder, general secretary of the newly formed Bangladesh Auto Steel and Re-rolling Mills Association (BASRM).
They noted that there is a growing market of steel products, particularly MS rod, in the seven sisters- Assam , Meghalaya, Manipur, Mizoram, Nagaland, Tripura and Arunachal.
He said if the Bangladeshi steel products are allowed to enter the Indian markets, they have the capacity to double their production.
"If we're allowed to export our products, we can easily earn upto $200 million a year. It will help reduce the huge trade gap with India," said the local steel maker.
Explaining their present business situation, the local steel makers said that among the Bangladeshi manufacturers, steel makers had experienced a major shock in the global meltdown in 2008.
"Many manufactures incurred huge losses. Some of them have even been compelled to shut down their manufacturing units," said Md Shahidullah, managing director of the Metrocem Ispat Mills Ltd.
"At that time, as the most affected sector, we deserved the government's stimulus package to revive our business. But, unfortunately, we didn't get that support", he added.
"Instead the government raised the duty of raw materials in the budget 2007-08. This time, again the government raised the tariff by 10-15 per cent in different categories in the new budget".