The ferocity of coronavirus pandemic has hugely impacted the country’s steel and cement companies putting the manufacturing establishments on the heels of a difficult time as all construction works, including government’s mega and development projects, remained suspended.
Despite relaxation of lockdown, the steel and cement companies are finding it difficult to reawake with the dropping of demand from the users also under harsh spikes of Covid-19.
The construction works remained closed since the government announced nationwide lockdown on March 26 for combating the deadly Covid-19 spread in the country.
However, the government withdrew the lockdown and reopened all offices on a limited scale.
But the major construction works have not yet been started in full swing as the government is very much aware about the spread of the Covid-19 virus which spreads human to human.
The government declared general holidays from March 26 to April 25 to flatten the curve of the coronavirus infections in the country, and since then, most of the companies have also shut their operations.
Some more companies have also suspended productions due to lack of demand and disruption in the global supply chain and also to minimize virus spread among their employees.
Bangladesh Steel Manufacturers Association general secretary Shahidullah said that all the steelmakers in the country kept their factories shut considering the risk of virus infection and lack of demand.
He said that the sector was facing a shortage of raw materials as the raw materials usually came from European countries and the United States, which were also facing the Coronavirus outbreak.
He said that the steel sector might face a critical situation even after the shutdown was lifted as the factories would face capital and raw material shortage that would take times to be settled.
Shahidullah, also vice-president of the Bangladesh Cement Manufacturers Association, said that the demand for cement plunged heavily in recent days.
The cement companies meet the demand of government projects, corporate projects and individual homebuilders, but the current situation has almost stopped their activities, he said.
He also said that the cement companies were facing a shortage of working capital as the customers could not pay the receivables on time.
He urged the government to declare an incentive for the sector.
Managing Director of Confidence Cement Zahir Uddin Ahmed said the production of cement was 30-40 percent against the demand during the lockdown period. After the withdrawal of shutdown, the production still remains the same, he added.
However, he said the production depends on the demands of the cement. “We are incurring losses. The production and profit will depend on the country’s overall economic situation. When the country’s economy is good, the cement industry will produce more as per it demands,” he also said.
Before the lockdown, the cement industry produced 70-80 percent.