The construction industry in Bangladesh is facing a severe financial squeeze as the price of mild steel (MS) rods hurtles towards the 100,000 BDT per tonne mark. Driven by escalating conflict in the Middle East and a volatile global energy market, retail prices for premium structural steel have surged by approximately 11% to 12% in a matter of weeks, reaching levels unseen in recent years.
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The Anatomy of a Price Hike
According to leading manufacturers, the primary catalysts for this spike are the rising cost of raw materials and a sharp uptick in ocean freight charges. The cost of importing melting scrap—the core ingredient for steel production—has jumped by roughly $50 per tonne (approx. 6,000 BDT) on the international market.
While these expensive shipments have yet to reach Bangladeshi ports, the domestic “ship-breaking” industry has already adjusted its rates in anticipation. Local scrap prices have climbed by 3,000 BDT per tonne, currently sitting at 57,000 BDT.
Comparative Pricing of Leading Brands
The domestic market is dominated by four major players: BSRM, AKS, GPH, and KSRM. Data reveals that within the last ten days alone, the price of these top-tier brands has increased by nearly 10,000 BDT per tonne.
| Brand Name | Pre-Conflict Price (BDT/Tonne) | Current Market Price (BDT/Tonne) | Total Increase |
| BSRM | 84,500 | 94,500 | 10,000 |
| AKS (Abul Khair Steel) | 83,000 | 93,000 | 10,000 |
| GPH Ispat | 82,000 | 92,000 | 10,000 |
| KSRM | 81,000 | 90,000 | 9,000 |
| HM Steel (Mid-Tier) | 79,000 | 89,000 | 10,000 |
Supply Chain Disruptions
The crisis is further compounded by a noticeable dip in raw material imports. Bangladesh relies on imports for 93% of its scrap metal needs. In February 2026, scrap imports plummeted to 324,000 tonnes—the lowest in twelve months—as importers adopted a cautious “wait-and-see” approach amidst geopolitical uncertainty.
The Bangladesh Steel Manufacturers Association (BSMA) has noted that many firms are currently operating with depleted inventories. Mr Md. Jahangir Alam, Chairman of GPH Ispat and President of BSMA, explained that the industry had previously been selling at near-loss levels due to low demand. “With the surge in oil prices, freight, and the strengthening Dollar, we have been forced to adjust prices to remain viable,” he stated.
Impact on Infrastructure
For developers and individual homeowners, this price hike translates to a significant increase in project budgets. With logistics experts like Jaguar Resources & Capital reporting that freight-inclusive scrap costs have jumped from $360 to $410 per tonne, the pressure on the Bangladeshi Taka shows no signs of abating. If the current trajectory continues, the psychological barrier of 100,000 BDT per tonne could be breached before the end of the quarter.