There are strong rumors in the market that Bangladesh government may increase import duty on billets in order to support domestic industry
Steel making capacity in the country has recently increased to 3 MnT from 0.8 Mnt in 2015. Big players like Abul Khair, BSRM, KSRM has increased their steel making capacity in order to meet increasing domestic demand.
Bangladesh imports around 1.5-2 MnT billet annually, out of which 60-70% is from China and rest from India, Russia, Ukraine.
Current import duty on billet is flat 7000/MT BDT (Bangladesh Taka), which is equivalent of USD 90/MT. Bangladesh government is consistently increasing duty on billet for last 2-years.
“There are strong rumors that government may increase duty on billets before budget session, which starts in June. We expect billet imports will fall from 1.5 MnT to around 0.8 MnT in coming year.”said an importer based in Bangladesh.
Import Duty change in Bangladesh in Last Two Financial Years
| Budget | Previous Duty | Updated Duty | Change in Duty |
| FY15 | 3,500 | 5,000 | + 1,500 |
| FY16 | 5,000 | 7,000 | + 2,000 |
Import Duty in BDT/MT
1USD = 77.6 BDT
Source: Ministry of Finance Bangladesh
Leave a Reply