Entrepreneurs eye export potential of steel, iron products

Businessmen and entrepreneurs are exploring the potential of exporting steel, iron, and iron products produced in Bangladesh to meet the local demand.

At a joint meeting organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Bangladesh Steel Manufacturers Association, they stated that with government support, Bangladesh has the potential to earn an estimated $10 to $15 billion in foreign exchange annually through steel or iron product exports.

FBCCI President Mahbubul Alam presided over the meeting held in the capital's Gulshan area yesterday.

Mahbubul Alam emphasised the need for entrepreneurs to identify and address the challenges associated with exporting steel or iron and iron products.

He urged them to develop specific proposals to overcome these challenges and determine the best course of action. The FBCCI, as the guardian of the private sector, will advocate for these proposals to policymakers, he added.

The FBCCI President also highlighted the significant role iron and iron products can play in diversifying Bangladesh's export portfolio.

Zillur Hossain, advisor to the Commonwealth Enterprise and Investment Council, underscored the immense potential for Bangladesh's steel and other export products to the member countries of the Commonwealth, including the United Kingdom.

He called upon both businesses and the government to take the necessary steps to capitalise on this opportunity.

Mohammad Jahangir Alam, president of the Bangladesh Steel Manufacturers Association, said Bangladesh produces high-quality iron and steel products using advanced technology.

He pointed out that the country's demand for steel is about 50% lower than the production capacity of local factories. "If the surplus steel can be exported to Commonwealth countries, including Africa, it could generate $10 to $15 billion in foreign exchange annually," he added.

Traders sought special government support to transform the iron and iron products industry into an export-oriented one.

The government support includes specific tariff benefits for the import of raw materials for iron and steel products, partial bond facilities, export incentives such as cash assistance, fuel price concessions for export-oriented steel factories, supply chain improvements, and other policy support.

Sumon Chowdhury, Country director of the Commonwealth Enterprise and Investment Council, Md Amir Hossain Noorani, director of FBCCI and vice president of Bangladesh Iron and Steel Importers Association, Md Shahidullah, managing director of Metrocem Ispat Limited, Sunil Kumar Adhikary, director of Bangladesh Investment Development Authority, and businessmen and entrepreneurs of the Spanish industry also attended the meeting.