Research Focus:

1. Conducted a demand and needs survey of the local companies and explored a collaboration possibility in order to establish a sales channel before exporting regarding steel scrap.
2. Conduct local demand and supply status surveys (including the list of local non-ferrous manufacturing industries) regarding non-ferrous metals (aluminum, copper, etc.).
3. For future prospects, conducted a technical level survey to consider exporting to third countries (India, Malaysia, Indonesia, Middle East, Korea, etc.) according to market prices.

Result of the Study:

Through the market research, it has been found that in 2018 the total production of steel billet in Bangladesh was 4.7 million MT which was 85% of total billet demand. To produce this billet metal scrap is sourced from both national and international sources. As Bangladesh has no iron mine yet, locally sourced scrapes mainly come from shipbreaking and domestic recyclable scrap. Among the 4.7 million MT scrap, 3.4 million scraps was imported in 2018.

AKS, BSRM, Anwar Ispat, GPH Ispat, KSRM are the leading importers of iron scrap; Kaium Metal Works, Latif Industrial Corporation, Akbar Metal Industries, Anjum Metal Industries Ltd, Alkara Metal Ind. are the leading importers of aluminum scrap; Nalco Alloys Ltd, Mohammadi Electric Wires & Multi Pr, are the leading importers of copper scrap and Rancon Sweaters Ltd, Yester Accessories Company (Bd) Ltd were the leading importers of brass scrap during 2017-2018 fiscal year.

Besides, importing scraps, Bangladesh exports waste of copper, aluminum, zinc, stainless steel, and waste of cast iron. Countries like India, Spain, Vietnam, and Japan are the major importer of those waste from Bangladesh.

As demand for steel in Bangladesh is increasing year by year, the rate of increment is around 8-10%, demand for scrap is also predicted to be high in the future. Thus, there is a potential scope for investors to re-think the Bangladeshi market.

Targeted long steel products of the study:

1. Rebar
2. Angle
3. Channel

Research Questions:

Research Questions:

1. Total domestic demand in Bangladesh for Rebar, Angle and Channel by grades/sizes for the past 10 years.
2. Total domestic production in Bangladesh for Rebar, Angle and Channel by grades/sizes the past 10 years.
3. 10 year forecast for Rebar, Angle and Channel domestic demand by grades/sizes.
4. 10 year forecast for Rebar, Angle and Channel domestic production by grades/sizes.
5. List of domestic mills for Rebar, Angle and Channel and type of furnace (EAF, Blast Furnace or Induction Furnace).
6. The capacity and actual production of each domestic mills for each products by grades/sizes.
7. Products and capacity expansion plan of each domestic mills.
8. Past 3 years financial information of top 10 mills by capacity (if available)
9. 10 years import statistics of Rebar, Angle and Channel.
10. Domestic scrap supply statistics.
11. Scrap import statistics.
12. Production Cost analysis – cost or ratio of electricity, labor, raw material, capex etc. to produce 1 MT of steel
13. What is the import duty (or other safeguard measures) for rebar, angle and channel.

Respondents for the Market Research

A total of 30 to 40 interviews were conducted with key stakeholders at different cities of Bangladesh mainly in Dhaka and Chittagong as the majority of the mills are located in these areas for getting the real picture of the market. Other than millers we have also interviewed retailers, wholesalers, dealers, and end-users of long steel products. General sectary of Bangladesh Auto Re-rolling and steel mills association (BARSMA) also helped us with industry insights.

Our Approaches:

Phase 1

• Review of government publications, trade and industry journals.
• Identified major steel millers for the study.
• Prepared survey tools.

Phase 2

Both Primary and Secondary research tools are used in this phase.

1. For primary research: Face to face interview was conducted with farmers, retailers, dealers, government officials, importers, manufacturers, and industry stakeholders.
2. For secondary research: Government publications, rules and guidelines, government gazettes, and other official documents were thoroughly examined. Import data for fertilizer were also analyzed to understand the supply chain and identify the key market players.
3. Forecasting: Straight line forecasting method has been used throughout the study. In this method, we have not taken the growth rate as constant. We have calibrated the growth rate throughout different years depending on the economic condition, agriculture system, demand for agricultural foods.

Phase 3

• The primary analysis of the survey was shared with the client to get feedback.
• The analysis was harmonized with the client’s feedback.
• Based on the client’s accord final report was submitted.

Result of the Study:

The market research has found that the demand for long steel has been increasing at a significant rate. In 2018 the market size was 5.5 million MT from Rebar 2,00,000 MT for angel and channel and the market was growing at around 7%.

BSRM, AKS, KSRM, Rahim Steel, GPH ispat are the leading market players of the industry capturing almost 75% of the market in 2018.

Mega projects like, Padma Bridge, Roopur nuclear power plant, 100 Special economic zones (SEZs), Roads and highways works and other government project are the main driver of this industry. Depending on the projects millers are very optimistic about the industry.