Bangladesh Steel Prices Surge Towards Record Highs

The construction sector in Bangladesh is facing a significant financial shock as the price of mild steel (MS) rods edges closer to the psychological milestone of 100,000 BDT per tonne. Driven by the volatile geopolitical situation in the Middle East, the cost of high-grade branded rods has surged by approximately 11% to 12% in a matter of weeks, leaving developers and individual builders grappling with soaring project estimates.

The Anatomy of a Price Hike

According to industry insiders, the primary catalysts for this escalation are twofold: the rising cost of imported scrap metal and a sharp spike in international shipping freights. The price of imported melting scrap—the core raw material for steel production—has jumped by roughly $50 (6,000 BDT) per tonne.

While this expensive new stock has yet to reach Bangladeshi ports, the market has reacted instantly through the domestic ship-breaking industry. Local scrap prices have climbed by 3,000 BDT, now resting at 57,000 BDT per tonne.

Comparative Market Rates for Major Brands

The “Big Four” steel manufacturers in Bangladesh—BSRM, AKS, GPH, and KSRM—have all adjusted their prices upward. Before the recent escalation in Middle Eastern hostilities, these brands were trading between 81,000 and 84,500 BDT. Today, the landscape has shifted dramatically:

A Crisis of Supply and Caution

The steel industry is also battling a contraction in raw material inflows. In 2025, Bangladesh imported 5.3 million tonnes of scrap, averaging 444,000 tonnes monthly. However, data from February 2026 shows imports plummeted to 324,000 tonnes—the lowest in a year.

This decline is attributed to “cautious positioning” by entrepreneurs. With the US Dollar remaining strong and global freight costs becoming unpredictable, many manufacturers are hesitant to open new Letters of Credit (LCs). Consequently, many factories are operating with depleted stockpiles, further tightening the available supply of finished rods.

Industry Perspective

The President of the Bangladesh Steel Manufacturers Association, Md. Jahangir Alam, noted that many companies had previously been selling products below production costs due to sluggish demand. “The convergence of rising oil prices, exorbitant shipping freights, and the appreciation of the Dollar has forced our hand,” he explained. “We had no choice but to adjust prices to remain viable.”

As the market continues its upward trajectory, the construction industry watches with bated breath, fearing that the 100,000 BDT threshold may soon be breached.