Bangladesh: Steel and scrap sector activity resumes as restrictions ease
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Industry reports indicated that Bangladesh is gradually recovering from the recent quota protests and civil unrest. With the government easing curfews, industrial activity across the country is slowly resuming. However, internet connectivity remained partially disrupted, which is indirectly impeding the full resumption of major trades in both the domestic and imported scrap sectors.
Dhaka-based scrap market participants reported that limited internet access is hindering communication with suppliers and preventing business from returning to normal. Despite recent events, steel mills in the Dhaka region have maintained production levels, though sales and deliveries have been impacted. Improvement is anticipated as conditions stabilise.
Our market survey on the nationwide disruption's impact on the ferrous scrap and steel market yielded mixed responses. Some experts believe the impact will be minimal, while others suggested waiting for further developments. However, current trends indicated that smaller mills and traders in the Dhaka region are affected, while larger mills are not expected to see any long-term effects.
Amid a nationwide curfew and communications blackout, the Bangladesh government has begun easing restrictions over the past two days. Measures to contain demonstrations and violent clashes have included deploying the national army.
According to local media houses, a significant number of troops deployed across major sensitive regions of the country to control the protests against government demands for quota reform. Also from government sources, it's confirmed that on Tuesday (23 July) the government had made changes to the quota allocation.
Curfews will now be imposed from 7 to 8 hours in Dhaka and 10-11 hours in Sylhet on 24-25 July.
What's next?
According to ministry sources, stability is expected within three to four days, but no date has been set for lifting curfews. The US and UK continued to warn against travel to Bangladesh due to civil unrest. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has suspended import and export operations at various ports, though Chattogram port remained partially operational with ships waiting offshore. The FBCCI has requested fee exemptions for importers and exporters until 15 days after normal port operations resume. The US State Department has raised Bangladesh's travel advisory to level four, urging against travel due to ongoing protests. Violent clashes have been reported, causing delays in consular services and restricting U.S. Embassy personnel movements.
