4th Int’l Trade Summit: Industry leaders emphasise promising prospects in steel, cerement and energy sectors

Industry leaders underscored Bangladesh's critical challenges and promising prospects in the steel, cement, and energy sectors at the 4th International Trade Summit, themed "Sustainable Future," organised by BigMint, India, in collaboration with Ahmed Enterprise, Bangladesh, held at Dhaka’s Pan Pacific Sonargaon on May 14-15.

With the nation grappling with raw material shortages and power supply issues, experts emphasised the need for robust policy support, regional cooperation, and sustainable practices to drive continued growth in infrastructure and industrial sectors.

Highlighting the burgeoning demand for steel and cement, the summit illuminated the path forward for a resilient and dynamic economic future amidst current global macroeconomic uncertainties.

Industries 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 Chairman Suman Chowdhury, PHP Family Managing Director Mohammad Iqbal Hossain, RUET Vice chancellor Prof Dr Md Jahangir Alam, Economist and BHBFC Chairman Prof Dr Salim Uddin, PHP Industrial Park Managing Director Muhammad Amir Hossain Shohel, Salam Steel Chairman Rezaul Karim, CSRM Managing Director Md Shahjahan, ZSRM Managing Director Md Saiful Islam, and Rahim Steel executive director Maruf Mohsin, among others, attended the event, according to a press release.

During the 10 sessions on flat steel, cement, power and energy, and ship recycling, experts underscored the challenges and way forward in these heavy industries.

For the first time, the conference featured a session on the second day titled ‘Success Story’, where Alhaj Sufi Mohamed Mizanur Rahman, founder chairman, PHP Family, Bangladesh, shared his experience on how he started and on how he became the business tycoon.

Another session of the conference was about the voice of young leaders who hold the position of their grandfathers in the business. They want to expand their grandfather's business. They want to move the manual production that their fathers and grandfathers used to automatic, and they are positive in this regard.

At the session titled "Global Flat Steel Market Dynamics and Perspectives on Imports," the panellists highlighted the many challenges in flat steel market dynamics. Bangladesh imports raw materials and manufactures the finished products.

Steered by progression in infrastructure, construction, and shipbuilding, the steel demand is expected to reach 15 million tonnes per annum (mntpa) by 2027. The cement industry, with its stable growth, is actively exploring opportunities to meet its clinker demand of 25 million tonnes per annum (mtpa).

While challenges for procurement of raw materials in the steel and cement industry necessitate imports, they also present Bangladesh with a significant opportunity for regional collaboration.

However, due to the shortage of raw materials, the production of flat steel is hampered, creating barriers for businesses. Importers face challenges while importing raw materials, leading to reduced operational hours in factories—from 24/7 to only 6-12 hours.

Consequently, small and medium businesses are facing losses as they become unable to continue their mills, making them the most vulnerable.

Another session, titled "Accessing Conventional Energy Sources & Prospects for Regional Cooperation," discussed Bangladesh's current power generation capacity of 30,000 megawatts, though challenges persist such as load shedding.

The urgent need to augment capacity to ensure an uninterrupted power supply, particularly during peak demand periods, was emphasised.

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

Prior to 2009, Bangladesh's power sector suffered undercapacity, whereas it is currently grappling with overcapacity issues.

Despite the overcapacity, industrial areas suffer frequent power cuts. Industrial owners are not receiving quality power, which is severely affecting export-oriented industries. Additionally, the cost of power is continually rising, exacerbating the situation.

Power stations have been constructed indiscriminately without ensuring an adequate energy supply, and gas-fired power plants have been built despite a gas shortage, impacting the power sector. Reliance on imported fuel has made power generation costly.

The 26,000 MW power sector is mostly dependent on non-renewable sources, though it is swiftly transitioning to clean and green energy.

At the current rate of constructing import-dependent power plants, Bangladesh would require $24 billion annually for energy imports by 2030, a significant burden on foreign currency amid the current economic crisis.

In another session titled "Harnessing The Potential Of Green Ship Recycling," entrepreneurs in the ship-breaking industry called for government policy support to navigate the significant unrest and economic stagnation in the industry due to a severe USD crisis.

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

Additionally, health facilities and insurance for workers have been established, setting a notable precedent. More than 130 ship-breaking yards are affected due to economic unrest.

However, the industry faces environmental hazards and waste management issues. For Bangladesh to be eligible for European ship-breaking contracts, improvements are necessary, including compliance with EU ship recycling regulations.

The final session, titled "Raw Material Procurement Challenges and Source Diversification In Cement Sector," highlighted the global renown of Bangladesh's cement sector. The country boasts the biggest crusher and many local and international brands operating within its borders.

Whereas people once built their homes with tin, many now prefer constructing buildings, contributing to the thriving cement industry in Bangladesh.