The Bangladesh Steel Manufacturers Association (BSMA) has warned that the recent electricity price hike has severely increased production costs, putting the domestic steel industry at risk. At a press conference held on Monday at the National Press Club in Dhaka, BSMA President Mohammad Jahangir Alam said the new tariff will add about Tk 1,785 per metric ton to production costs, which could rise to Tk 3,560 when other expenses such as VAT, fuel, and transport are included. The association demanded immediate withdrawal of the increased tariff.

BSMA leaders said the industry was already struggling due to low demand in the construction sector, high interest rates, currency depreciation, dollar shortages, and gas supply constraints. The sector comprises around 40 modern steel mills and over 150 re-rolling mills with a combined annual capacity of 12.2 million metric tons, though national demand is only about 5 million tons. They argued that the higher electricity cost will also raise expenses for government infrastructure projects, as about 60 percent of domestic steel is used in public development works.

The association urged the government and the Bangladesh Energy Regulatory Commission to reconsider the decision and restore the previous tariff to protect investment, employment, and industrial growth.