4th International Trade Summit: Industry leaders highlight promising prospects in steel, cement and energy sectors

Industry leaders highlighted Bangladesh’s key challenges and promising prospects in the steel, cement and energy sectors at the 4th International Trade Summit titled ‘Sustainable Future’ organized by BigMint India in collaboration with Ahmed Enterprise of Bangladesh and hosted at Pan Pacific in Dhaka Sonargaon on 14 -15th of May.

As the nation grapples with raw material shortages and energy supply issues, experts have stressed the need for solid policy support, regional cooperation and sustainable practices to drive continued development in the infrastructure and industrial sectors.

Highlighting the growing demand for steel and cement, the summit outlined a path towards a resilient and dynamic economic future in the face of current global macroeconomic uncertainty.

Industry Minister Nurul Majid Mahmud Humayun addressed the conference as the chief guest and PHP Chaiman Alhaj Sufi Mohamed Mizanur Rahman inaugurated it. Norwegian Ambassador to Bangladesh Espen Rikter Svendsen, BSRM Managing Director Aameir Alihussain, Rahim Steel Chairman Mohammed Mohsin, BSMA Secretary General and RRM President Suman Chowdhury, PHP Family Managing Director Mohammad Iqbal Hossain, RUET Vice-Chancellor Prof. Dr Md Jahangir Alam, Economist and Chairman BHBFC According to Dr Salim Uddin, Managing Director PHP Industrial Park Muhammad Amir Hossain Shohel, Chairman Salam Steel Rezaul Karim, Managing Director CSRM Md Shahjahan, Managing Director ZSRM Md Saiful Islam and Executive Director Rahim Steel Maruf Mohsin. to the press release.

During 10 sessions devoted to flat steel, cement, energy and ship recycling, experts highlighted the challenges and opportunities for the development of these heavy industries.

For the first time, on the second day of the conference, a session titled “Success Story” was held where Alhaj Sufi Mohamed Mizanur Rahman, Founding Chairman of PHP Family from Bangladesh, shared his experiences on how he started and how he became a business tycoon.

The next session of the conference was devoted to the voice of young leaders who act as their grandparents in business. They want to expand their grandfather’s business. They want to transfer the manual production that their fathers and grandfathers used to automate, and they are positive about it.

During the session titled “Global Flat Steel Market Dynamics and Import Prospects,” panelists highlighted the many challenges associated with flat steel market dynamics. Bangladesh imports raw materials and produces finished products.

Driven by advances in infrastructure, construction and shipbuilding, steel demand is expected to reach 15 million tonnes per annum (mntpa) by 2027. The cement industry, characterized by stable growth, is actively exploring options to meet clinker demand of 25 million tonnes per annum ( mtpa).

While raw material supply challenges in the steel and cement industries require imports, they also present Bangladesh with a significant opportunity for regional cooperation.

However, due to the shortage of raw materials, the production of flat steel is difficult, which creates barriers for enterprises. Importers face challenges when importing raw materials, which leads to reduced working hours in factories – from 24/7 to just 6-12 hours.

As a result, small and medium-sized enterprises suffer losses because they are unable to continue operating their steel mills, making them the most vulnerable.

Another session, titled ‘Access to conventional energy sources and prospects for regional cooperation’, discussed Bangladesh’s current power generation capacity of 30,000 megawatts, although challenges such as load shedding remain.

The urgent need to increase production capacity to ensure uninterrupted energy supplies, especially during periods of peak demand, was highlighted.

On the second day, in a session titled ‘Bangladesh Power Sector at a Crossroads’, energy experts demanded immediate shutdown of oil-fired power plants to reduce power generation costs.

Before 2009, Bangladesh’s power sector suffered from capacity shortages, but is now facing overcapacity problems.

Despite excess production capacity, industrial areas often experience power outages. Industrial owners do not receive high-quality energy, which seriously affects export-oriented industries. Additionally, energy costs are constantly rising, which makes the situation worse.

Power plants were built on a massive scale without ensuring adequate energy supplies, while gas-fired power plants were built despite gas shortages, which had an impact on the electricity sector. Dependence on imported fuel made power generation expensive.

The 26,000 MW power sector relies largely on non-renewable sources, although it is rapidly transitioning to clean and green energy.

At the current rate of construction of import-dependent power plants, Bangladesh would need $24 billion annually for energy imports by 2030, which would pose a significant burden on foreign exchange amid the current economic crisis.

In another session titled “Harnessing the Potential of Green Ship Recycling”, ship breaking industry entrepreneurs called for support for government policies to overcome the significant unrest and economic stagnation in the industry caused by the severe dollar crisis.

Bangladesh’s ship breaking industry has overtaken those of India and Pakistan to become a global leader, with significant improvements in environmental and waste management in recent years.

In addition, health care and insurance for employees were created, which is a noteworthy precedent. Economic unrest affects more than 130 shipbreaking yards.

However, the industry is struggling with environmental threats and problems related to waste management. For Bangladesh to be eligible for European shipbreaking contracts, improvements are needed, including compliance with EU rules on ship recycling.

The last session, titled “Raw Material Sourcing Challenges and Source Diversification in the Cement Sector”, highlighted the global reputation of Bangladesh’s cement sector. The country boasts the largest crushing plant and many local and international brands operating within its borders.

While people once built their houses out of tin, many now prefer to construct buildings, contributing to Bangladesh’s thriving cement industry.