News / Building Bulletin

Bangladesh steel and cement sectors under strain

ICR Newsroom

Published 12 October 2026, 01:00 Updated 12 October 2026, 19:50

Bangladesh’s steel and cement manufacturers are facing mounting pressure as subdued demand and rising production costs continue to erode profitability, industry insiders said. Despite the end of the monsoon season, demand for construction materials has shown little sign of recovery, leaving producers burdened by higher energy and import costs. Trading Corporation of Bangladesh (TCB) data shows higher quality rod sold at BDT92,500-94,500/t recently, up 10.3 per cent YoY. Yet sales remain sluggish, with factories forced to offer discounts to secure orders, according to local media reports. Executives point to electricity tariff hikes of 17.9 per cent in June, gas shortages and frequent power disruptions as key drivers of rising expenses. The recent fuel price increases have further intensified the burden on the energy-intensive steel industry. Retailers in Old Dhaka report that while rod prices have fluctuated, customer demand has weakened, with buyers shifting to cheaper brand...