Highlights
Bangladesh's infrastructure drive is reshaping not only the country's skyline but also the future of its steel industry.
As major projects such as the Padma Bridge, Dhaka Metro Rail, elevated expressways, economic zones and high-rise buildings require stronger and more durable materials, engineers and industry people say the focus must gradually shift from producing more steel to producing better-quality steel through advanced technology.
Industry insiders estimate that the country now consumes around 8 million tonnes of steel annually, with nearly 80% used in construction.
Backed by investments worth tens of thousands of crores of taka, the sector has reduced dependence on imported finished steel and created employment for hundreds of thousands of people.
Globally, steelmaking is undergoing a technological shift.
According to the World Steel Association, production through electric arc furnaces is expanding as countries focus on cleaner manufacturing, greater recycling and higher-quality steel.
Unlike conventional induction furnaces, modern electric arc furnaces combined with ladle refining furnaces allow manufacturers to better control chemical composition, remove impurities and produce more consistent steel.
Such qualities are increasingly needed for bridges, ports, airports, power plants and high-rise buildings, industry people said.
Despite its rapid expansion, much of Bangladesh's reinforcing bar production still relies on induction furnace technology, particularly among small and medium-sized mills.
While the technology helped build the domestic steel industry through lower investment and quick capacity expansion, engineers say future infrastructure will require better refining and stronger quality control.
Prof Md Aminul Islam, professor at the Department of Materials and Metallurgical Engineering of Bangladesh University of Engineering and Technology (Buet), said higher-grade construction materials could improve both structural efficiency and sustainability.
Upgrading from Grade-400 to Grade-500 reinforcing steel, while increasing concrete strength from 30MPa to 60MPa, could reduce structural weight by nearly 28% without compromising safety, he said.
He also said steel and cement together account for a significant share of global carbon emissions, underscoring the need for cleaner steelmaking technologies as Bangladesh prepares for its next phase of industrial and infrastructure development.
Leading producers invest in advanced technology
Some of Bangladesh's largest steelmakers have already begun shifting towards advanced production technologies.
Abul Khair Steel introduced one of the country's early electric arc furnace facilities in 2015. GPH Ispat followed with a Tk2,500 crore Quantum Electric Arc Furnace project at Sitakunda in 2020, while BSRM and KSRM have continued investing in automation, quality assurance and higher-specification production lines.
Manufacturers say these investments improve product consistency, reduce energy consumption, lower emissions and strengthen Bangladesh's ability to compete in export markets, where buyers increasingly demand certified and environmentally compliant products.
Industry executives believe technological upgrading is gradually becoming a competitive necessity rather than simply an engineering choice.
Real estate sector seeks higher standards
The country's real estate developers, among the largest consumers of construction steel, are also calling for higher-quality materials as urban buildings become taller and more technically demanding.
Ali Afzal, president of the Real Estate and Housing Association of Bangladesh (Rehab), said developers are increasingly prioritising structural durability over short-term cost.
"Buildings are expected to serve for generations. As Bangladesh is located in a seismically active region, earthquake resilience must remain a priority," he said.
"It is now time to gradually implement the mandatory use of refined, high-quality steel in major construction projects and ensure wider compliance with the Bangladesh National Building Code."
Industry insiders said stronger material standards would improve buyer confidence while supporting the long-term sustainability of Bangladesh's real estate sector.
Engineers call for updated practices
Construction engineers said building codes and industry practices should evolve alongside technological advancements.
Md Nurul Islam, chief engineer (implementation) of Rajuk, said demand from both government and private developers would ultimately determine the industry's direction.
"If demand for refined and higher-quality steel increases, manufacturers will naturally invest in producing it," he said.
He noted that public infrastructure projects account for a major share of steel consumption. While manufacturers are already capable of producing reinforcing bars up to Grade 700, the Bangladesh National Building Code currently allows Grade 500 reinforcement for most applications.
"We are gradually preparing our engineering workforce for greener and more advanced construction technologies," he added.
Md Shamsuddoha, additional chief engineer of the Public Works Department, said steel would remain indispensable for Bangladesh's development, but the industry must also reduce its environmental footprint through modern production technologies and greater recycling.
Investment remains a challenge
Industry leaders acknowledge that modernising Bangladesh's steel industry will require significant investment, reliable electricity supply and supportive industrial policies.
Electric arc furnace projects involve substantially higher capital expenditure than conventional melting technologies, making access to long-term financing and affordable energy essential for wider adoption.
M Zakir Hossain Khan, chief executive of Change Initiative, said Bangladesh now needs a national roadmap for cleaner steel production.
"Bangladesh should define how the steel industry will become cleaner, smarter, safer and more resilient by 2030 or 2035," he said.
He added that greater use of renewable energy, improved scrap recycling and adoption of Environmental, Social and Governance standards could help Bangladesh strengthen export competitiveness and position itself in the emerging green steel market.
steel industry / infrastructure
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