Research on Bangladesh’s Flat Steel and Corrugated Sheet Market
- 7月 18, 2018
- Posted by: Sujon Ahamed
- Category: 市場調査
A International Trading Company
April – July 2018
This market study was carried out to investigate the current market situation and the future demand of CR / Galvanized /Galvalume/Color steel Coil Sheet and the growth potential associated with the secondary industries in Bangladesh.
Respondents for the Market Research
Market study team of NewVision Solutions conducted interviews with the relevant stakeholders – manufacturers, wholesalers, retailers – who are directly or indirectly involved with trading and using CR / Galvanized /Galvalume/Color Steel Coil Sheet. End user of the corrugated and industrial profile were also surveyed in 13 districts across Bangladesh.
- Review of government publications, trade and industry journals.
- Identified primary and secondary steel industry.
Both primary and secondary research tools were used in this phase.
- For primary research: Face-to-face interviews were conducted with importers, wholesalers, retailers, industrial buyers, end-users and with relevant government officials.
- For secondary research: Government publications, rules and guidelines, government gazettes, and other official documents were thoroughly examined.
- The analysis 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:
Based on the market research, it has been found that flat steel imports have increased from 0.62 million tons in 2007 to 2.39 million MT in 2016 at a CAGR of 14.30%. Also, 15.62% year-on-year growth in steel imports between 2015 and 2016 indicated an increase in overall steel consumption.
Key factors why consumers choose color coated and galvalume sheets over galvanised sheets were identified through this research. In the past, the customer would buy galvanised corrugated sheets because of the price but now, the purchasing power of Bangladeshi consumers has increased and they can aford to spend more while constructing their houses, commercial buildings, and other establishments.
Goru Marka/Cow Brand – produced by Abul Khair Steel –appears to be the most selling brand with a majority of the market share. It has a strong brand reputation and a very well organized distribution network. Its products are not of great quality but cheaper than other manufacturer’s products and available almost everywhere in Bangladesh. ‘Arabian Horse’ (PHP) and Murgi Marka/Hen Brand (KY Steel) also has a discernible presence across the country.
Bangladesh’s steel industry, in general, is booming and expected to continue for years to come with huge potential. However, if we separate plain coil and corrugated sheets – galvanised, color coated and galvalume– from the whole flat steel business then things are rather different and to some extent complicated.
Competition among existing manufacturers has led to some sort of price war and this is alarming for any new entrants or a company that wants to increase or add new products into its production line. Because, this company would be entering a sector which is already somewhat saturated and the profit margin is curved.