The Daily Star reported that steel manufacturers in Bangladesh are bracing for massive losses as the coronavirus pandemic has disrupted the import of raw materials and production. As much as 90 per cent of the raw materials are imported from the US, Canada, Italy, the UK and Australia, which have gone into partial or full lockdown since the beginning of March to contain the spread of the highly contagious and deadly pathogen. And the lockdown in the countries are unlikely to be lifted anytime soon given the breathtaking pace at which the novel virus is infecting people there and claiming lives. Not only raw materials, steel manufacturers are unable to bring in spare parts or capital machinery for the near standstill of economic activities around the world, he said, adding that about eight million empty containers are now stranded in the Chinese ports alone.
To tide them over during this trying period, steelmakers are demanding some policy support. Banks can extend the tenure of payment for letters of credit by an additional six months without the need for taking prior permission from the central bank, Hossain said, while calling for a fund for short-term loans against LCs.
The country has about 40 active manufacturers, who altogether have the capacity to manufacture nine million tonnes of steel a year. Of them, Abul Khair Steel, GPH Steel, BSRM and KSRM meet more than half the annual demand for about eight million tonnes.
Source: STEELGURU
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