Steel manufacturers on Monday expressed their deep concerns over the latest electricity tariff hikes, stating that the decision would further compound the challenges facing the country's steel industry.
The decision would also affect the sector's competitiveness at a time when the industry is already struggling with multiple economic pressures.
The Bangladesh Steel Manufacturers Association (BSMA) said the new tariffs would increase steel production costs by around Tk 3,650 per tonne, taking into account higher electricity expenses alongside related charges and operational costs.
The association raised the concerns and made the observations at a press conference held at the National Press Club in Dhaka, urging the government to review the decision and restore the previous tariff rates.
The industry leaders also fear that the additional burden will eventually be reflected in market prices, affecting construction, housing, infrastructure and industrial projects.
BSMA President Jahangir Alam and Secretary General Sumon Chowdhury spoke at the event.
Former BSMA President Manwar Hossain, Founder President Sheikh Masadul Alam Masud, Vice President Furkan Mohammad N. Hossain, Vice President Rezaul Karim (Raju), and Vice President Maruf Mohsin were, among others, present at the press conference.
Speaking on the occasion, Mr. Jahangir Alam said the tariff hikes had come at a difficult time for the industry.
"The steel sector is passing through one of the most challenging periods in its history. Increased electricity prices will further weaken the industry's ability to sustain operations and make new investments," he said.
The association said around 40 modern steel mills and more than 150 re-rolling mills currently have a combined annual production capacity of 12.2 million tonnes, while domestic demand remains around 5.0 million tonnes.
As a result, many mills are operating well below capacity amid weak market conditions, it added.
