[🇧🇩] Steel Industry in Bangladesh

[Saif]

GPH Ispat pioneers green steel in Bangladesh with most advanced technology​

This innovation has enabled the company to significantly cut carbon emissions and energy use in steel production – a sector globally known for its high carbon footprint​

Steel manufacturing plant of GPH Ispat Limited. Photo: Courtesy

Highlights:

• GPH Ispat adopted Quantum Electric Arc Furnace, cutting emissions drastically
• Scrap recycling reduces carbon emissions by 1.67 tonnes per tonne
• Plant produces 10 lakh tonnes annually; exports steel to China
• 600-grade rods reduce rebar use, costs, and improve safety
• Rainwater harvesting, reforestation, and Zero Liquid Discharge conserve resources
• Solar power, REC trading reduce carbon footprint and energy costs

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GPH Ispat Limited has set a new benchmark in the country's steel industry by adopting the world's most advanced Quantum Electric Arc Furnace (Q-EAF) technology to produce environmentally friendly rebar.

This innovation has enabled the company to significantly cut carbon emissions and energy use in steel production – a sector globally known for its high carbon footprint.

By recycling scrap metal instead of relying solely on raw iron, GPH Ispat has reduced carbon emissions by 1.67 tonnes per tonne of steel produced. Moreover, the advanced manufacturing process has enabled the company to reduce its natural gas and electricity consumption by up to 50%, officials said.

Located on a 150-acre site in Sitakunda upazila of Chattogram, GPH Ispat's plant has an annual production capacity of 10 lakh tonnes. The company has already exported its steel products to China – a rare feat for a Bangladeshi steelmaker. The Quantum Electric Arc Furnace was installed in 2020, marking the first such installation in Asia and only the second in the world. The system is both energy-efficient and environmentally sustainable, representing an investment of about Tk2,500 crore.

Infograph: TBS

Cutting emissions and saving energy

According to company data, the Q-EAF technology transfers billets directly from casting to rolling, reducing the need for reheating and saving up to 2.5 times more gas compared to conventional methods. Pre-heating scrap metal lowers power consumption by 50% and gas use by more than 50%, saving around 26.46 million cubic metres of gas per year. The process also prevents slag contamination, resulting in purer steel and reduced waste and greenhouse gas emissions.

Producing high-strength, sustainable rods

GPH Ispat now markets high-strength 600-grade rod under the brand GPH Quantum. These rods have been used in major infrastructure projects such as the Padma Bridge, Dhaka Metro Rail, Dhaka Elevated Expressway, and the Third Terminal of Hazrat Shahjalal International Airport.

Mashiur Rahman Bhuiyan, head of Quality Control and R&D at GPH Ispat, told TBS that the company is the first in Bangladesh to produce and market 600-grade rod. The GPH Quantum B600C-R and B600D-R variants make structures stronger, more durable, and safer while reducing rebar use by up to 30%, thus cutting construction costs. The rods also provide better earthquake resistance, improved flexibility, and easier weldability – all contributing to lower carbon emissions and sustainable construction.

A 10-story administrative building with 15,000 square feet on each floor where dormitory for factory officials and factory office will be located. Photo: Md Minhaj Uddin

Harnessing rainwater and protecting environment

To reduce dependency on groundwater, GPH Ispat began a rainwater conservation initiative in 2017. Based on research by the Institute of Water Modelling, the company built a 55-acre artificial reservoir in 2019 at the foothills behind its plant, capable of storing 15 lakh cubic metres of water. The collected water is purified and reused in production and daily operations.

The surrounding hills have been reforested with over 2,00,000 trees, including medicinal and fruit-bearing species, creating a biodiversity-friendly green belt that supports local livelihoods and wildlife. The conserved water is also used for fish farming, while a Zero Liquid Discharge (ZLD) system ensures that 90% of used water is recycled, preventing pollution and wastage.

This does not waste any water or cause pollution by dumping it down the drain. Typically, an average of about 14 lakh litres of water is required to produce 1,000 tonnes of rods.

Controlling air pollution

To combat air pollution, GPH Ispat has installed a state-of-the-art off-gas treatment plant that reduces emissions to as low as 10 micrograms per cubic metre – well below national and international standards. The system traps harmful gases such as nitrogen oxides and carbon monoxide, keeping the surrounding air clean. The company complies with International Finance Corporation standards and contributes directly to Bangladesh's Nationally Determined Contribution roadmap for carbon reduction.

Investing in renewable energy

GPH Ispat's Sitakunda facility requires around 100 megawatts of electricity per hour to operate. To reduce its carbon footprint and energy costs, the company has installed a 6.05-megawatt solar PV system on its factory rooftops. The system prevents about 89,000 tonnes of CO₂ emissions annually and supplies renewable power to GPH Ispat through its subsidiary, GPH Renewable Power Plant.

In October 2024, GPH Ispat became the first steel company in Bangladesh to earn revenue from Renewable Energy Certificate (REC) trading, generating nearly Tk20 lakh in just eight months. This milestone marked a significant step towards sustainable industrial practices and climate responsibility in the country.

When its journey began

Founded in 2006 as a private limited company, GPH Ispat became a public limited company in 2009 and was listed on the Dhaka and Chattogram stock exchanges in 2012. Today, it has more than 10,000 shareholders.

With its pioneering adoption of Q-EAF technology, investment in renewable energy, and commitment to sustainability, GPH Ispat is redefining Bangladesh's steel industry – leading the way towards a cleaner, more efficient, and environmentally responsible future.

Do we import iron ore? Steel is a strategic commodity so we have to be self sufficient in producing steel.

 

[Saif]

Steelmakers pin hopes on revival of govt projects

The resumption of public infrastructure projects has raised hopes of a recovery among steelmakers, who have been struggling with weak demand, rising costs and financial pressure.

www.thedailystar.net

Steelmakers pin hopes on revival of govt projects

Jagaran Chakma

The resumption of public infrastructure projects has raised hopes of a recovery among steelmakers, who have been struggling with weak demand, rising costs and financial pressure. However, a lasting recovery will depend on whether renewed construction activity translates into stronger steel sales.

Steel demand declined mainly because public construction and government infrastructure projects slowed after the political changeover in August 2024, said Sumon Chowdhury, secretary general of the Bangladesh Steel Manufacturers Association (BSMA).

“The steel sector has been struggling for nearly two and a half years as the domestic economy and construction activity remain sluggish,” said Md Mamun Kabir, director of sales and marketing at KSRM.

Manufacturers said the prolonged downturn had exposed the industry’s heavy dependence on public spending. Sluggish property development and weak private construction have added to the pressure.

Annual domestic steel consumption has fallen to an estimated 40 lakh tonnes from around 70 lakh tonnes previously, Sumon said. The government’s share of steel consumption has also dropped from around 60 percent to 20 percent, he added.

At the same time, steelmakers are facing higher raw material and utility costs, expensive bank loans and a shortage of working capital.

International scrap prices have risen by around $20 per tonne, while electricity prices have increased by 18 percent. Gas and power shortages have also disrupted production. However, weak demand has prevented manufacturers from passing on the full increase in costs to customers, Mamun said.

Despite these challenges, steel rod prices have increased. According to the Trading Corporation of Bangladesh, prices of 60-grade mild steel rods rose to Tk 92,500 to Tk 94,500 per tonne on October 5, from Tk 83,500 to Tk 86,000 a year earlier.

Prices of 40-grade rods also climbed to Tk 89,000 to Tk 91,000 per tonne from Tk 75,000 to Tk 79,000 over the same period.

Higher selling prices, however, have not translated into better profit margins. Rising production costs and weak sales have left manufacturers struggling to cover operating expenses and repay loans.

RISING COSTS PUSH MILLS INTO FINANCIAL DISTRESS

GPH Ispat’s financial performance reflects the industry’s difficulties. Its gross revenue fell nearly 25 percent to Tk 3,320 crore in the first nine months of fiscal 2025-26, from Tk 4,400 crore a year earlier.

The company reported a loss of Tk 10.65 crore during the period, compared with a profit of Tk 30.31 crore in the same period a year earlier.

With liabilities of around Tk 12,000 crore, the company has sought a four-month waiver or relaxation of Credit Information Bureau requirements from Bangladesh Bank to restructure its debt with more than two dozen banks and financial institutions.

“Rising raw material, fuel and transport costs continue to squeeze margins,” said Mohammed Jahangir Alam, chairman of GPH Group and managing director of GPH Ispat.

Industry insiders said seven of the country’s 39 steel mills had shut down, while those still operating were running at only 40 percent to 60 percent of their annual production capacity.

The industry represents around Tk 1 lakh crore in investment. Further closures could threaten jobs, reduce government revenue and weaken the country’s domestic steel production capacity.

The BSMA has repeatedly sought meetings with the prime minister, the National Board of Revenue chairman and the Bangladesh Bank governor to discuss the industry’s problems. However, it has been unable to secure appointments despite making requests over the past two to three months, Sumon said.

He urged policymakers to ensure affordable working capital and restructure loans for viable mills rather than spend heavily to revive plants that have been closed for years.

There are, however, some signs of hope. The Executive Committee of the National Economic Council (ECNEC) recently approved 12 development projects worth Tk 1,68,780 crore, which are expected to support steel demand.

The projects include a new 17.20-kilometre southern route of MRT Line-5, running from Gabtali to Dasherkandi, as well as revised budgets for MRT Line-1 and the northern route of MRT Line-5.

Jahangir of GPH Group said demand was gradually improving, partly because of projects approved under the Mass Rapid Transit programme.

“Large infrastructure projects could boost demand for steel, cement, glass, cables and electrical equipment,” he said.

Tapan Sengupta, deputy managing director of BSRM, said the company was operating its factories at around 80 percent capacity despite sluggish demand. He expects market conditions to improve as the government resumes development projects.​