Steelmakers across Bangladesh are struggling to stay afloat amid slowing demand, political uncertainty, and sluggish construction activity, particularly in the public sector.

Industry insiders say that many large-scale mills have slashed prices in an effort to survive, while smaller factories have suspended operations. Of the nearly 200 steel mills operating in the country, about 40% have halted production, according to estimates.

Bangladesh Steel Manufacturers Association (BSMA) data show annual installed capacity at 11–12 million tonnes, but demand has fallen to 5.0 million tonnes from a usual 6.0 million, a 17% drop.

Global figures from the World Steel Association also reflect the downturn, with crude steel output declining to 4.5 million tonnes in 2024, down from 5.0 million tonnes in 2023.

Former BSMA Chairman Sheikh Masadul Alam Masud said the industry had been facing difficulties for several years, which have worsened now that the interim government is focusing on reforms rather than private-sector concerns.

“Mills after mills are getting closed,” said Mr Masud, Managing Director of Shahriar Steel Mills Ltd, warning that access to bank finance has also tightened.

The slowdown in public projects has added pressure. The Planning Commission reports that implementation of the Annual Development Programme in the last fiscal year fell to 68% — the lowest in two decades.

Analysts warn that continued weakness in steel demand could deepen financial stress in the sector and disrupt broader economic activity.