Following the Iron Age (1200–500 BCE), the human race transitioned through the classical, medieval, and early modern eras. We are now in the modern era. 

Don’t be afraid; we won’t delve into the details of those childhood tensions related to learning about these periods in the social science book! 

However, we can reflect upon the social paradigm shift with the increase in capacity building in iron usage. The modern era has been built on steel, and it will continue to remain heavily dependent on steel in the foreseeable future.

It is said that a nation or society is progressing when it can produce basic metals, such as steel, aluminum, and copper. 

Let’s measure the impact. Think about the objects we use directly or indirectly every day that are made of these three materials. Or, consider objects made of steel. The list will be long for sure. 

However, how many of these steel items, which are produced in Bangladesh, are sourced with raw materials such as ingots, coils, plates, and rebars from within Bangladesh? 

For example, doorknobs and bathroom faucets are made in Bangladesh, but the source of their primary metals is not within our borders.  

The sliding gates on our staircases, the shutters in our shops, and even the tablespoons in our kitchens are manufactured from imported steel. This reliance highlights the significant volume of steel materials being bought to produce these finished goods. 

Some may wonder, if these raw materials are all imported, what activities are taking place in the large factories such as BSRM, AKS, KSRM, PHP, KYCR, Anwar, etc? All these manufacturers are making rebars (a local colloquial term for a rod). 

Now, what about those dheutin (corrugated sheets) ads we’ve been watching on television? Those are also produced based on imported coils or plates, manufactured mainly in China or India. 

Bangladesh imports around USD 0.4 billion of iron and steel products, mainly HR coils, plates, and ingots. Scrap imports are excluded and are only imported for the production of rebars. 

Only Rahim Steel in Bangladesh can produce some plates, but the plant is small, outdated, and reliant on obsolete technology. 

On the other hand, there are products imported directly as finished goods, as we lack the capacity for secondary processing or meeting local demand. Such a situation prompts the government to give duty protection to the traders/importers. 

The average steel consumption in Asian countries is 310 kg per person. South Korea, China, and Japan have a consumption rate of above 500 kg per person. In contrast, Bangladesh’s consumption is around 55 kg per person, while India’s is above 100 kg per person. 

It is an established global index that helps understand a country’s progress trend by assessing its per capita steel consumption. 

In general, a country is considered moderately developed with a stable economic condition, characterized by steel consumption above 150 kg per person. India aims to increase it to 160 kg/person by 2030. 

The number indicates our limited manufacturing capacity, resulting in stagnation in downstream industries, such as large workshops that produce spares, automobiles, and electrical items. 

Currently, Bangladesh’s total capacity is around 9.9 million tons per annum (MTPA) of hot metal production, and all manufacturers produce rebars. 

In the steel manufacturing process, it is divided into three stages: primary metallurgy, secondary metallurgy, and cold rolling. We have secondary metallurgy facilities, where we produce rebars by melting scraps and cold rolling, as well as corrugated sheets and profile sheets.

Additionally, we have another process where we create section items from imported plates by cutting them to size and then welding them according to the design. This is also considered a cold process. 

When molten metal is available in the process, it is referred to as primary and secondary metallurgy, and the process is called the hot process or hot-rolled process. 

These processes can also be segmented by end products. One is a long product plant that manufactures rebars, pipes, angles, channels, and other products, while the other is flat, producing HR coil, HR plate, and other materials. 

Practically, we need to build a secondary metallurgy plant that will produce HR coils and plates to substitute for imported materials. A capacity ranging from 1.5 to 1.8 MTPA is a good one to start with. 

The country has to gain experience with such plants as well as prepare and strengthen its power grid to support such plants (mainly the 230 KV transmission grid). 

In the process, the grid operation teams and the energy sector will also have the opportunity to get future-ready. 

To reach 100 kg/person steel consumption, we must build the capacity of at least 3.5 MTPA by 2035 in the flat product line itself. Only then will the import subside, and downstream industries, such as MS metals, stainless steels, and electric steels, may flourish, bringing more demand for such plants. 

This will pave the way for producing finer steels, also known as precision steels, through primary metallurgy, such as blast furnaces and basic oxygen furnaces, for automobile outer bodies and other materials that require a stringent chemical composition to be maintained, as well as robust materials like rail tracks and hot-rolled beams. 

There is no other way to achieve industrial and economic progress without building a strong metal industry. Steel is and should be the first and most crucial step. Gradually, similar measures need to be taken for aluminum and copper.  

Giasuddin M Tauseef is currently the country manager of Bangladesh SMS Group. He is a techno-commercial project professional with an electrical power engineering background. He has over 15 years of experience in the heavy industries, particularly in power generation, distribution, steel, and non-ferrous manufacturing.