Can Billet Export to Bangladesh Recommence?

Billet export to Bangladesh once was a significant source of raw material for re-rollers was severely hit after the Bangladesh government imposed a 20% regulatory duty and 15% VAT on billet imports in last federal budget.

The Bangladesh finished steel producers who were heavily dependent on the India, found themselves in severe crises. Even though export from India continued for some time but cost of production rose for steel producers, specifically for those without billet production facilities. Gradually the country developed billet production capacity and today is entirely self sufficient.

One of the most prominent steel producers in Bangladesh believes that at this juncture it does not make sense for the Nation to go back to imports while capacities here are going idle.

It was being believed that authorities may consider reducing import duties to de-congest its ports which are presently overburdened with scrap imports. However according to experts this would in turn exert pressure on the road transport facilities which in itself are not in good shape in Bangladesh.

Bangladesh is on course to become self-sufficient in billet manufacturing, owing to huge investment by large steel mills to make the main raw material for re-bars amid the growing demand.

The country's billet production capacity more than doubled to nearly 3.5 - 4 million tonnes per year, accounting for more than two-thirds of the total yearly demand.