|
The recent unusual price hike of the Mild Steel (MS) rods and other steel products was not a phenomenon driven by market forces but a result of deliberate move by the ship breakers' syndicate, aYPSA report said.
The syndicate has stopped import of the scrap ships from abroad for a few days to create an artificial crisis of the MS rods and steel in the local markets in a move to force the government to reduce import tax from 15 per cent to 7.50 per cent.
"As the government reduced the import duties on the scrap ships from 15 per cent to 7.50 per cent a record number of such vessels arrived at the yards of Sitakundu within shortest possible time," said Mamun, who have been working in ship-breaking yards for years as an NGO worker.
He said the local markets of rods and steel are being controlled by the syndicate so the prices of the same also depend on their will.
Two years ago, the prices of the MS rod and steel in the local markets jumped more than double to Tk 40,000- 42,000 per tonne from Tk 18,000-20,000 per tonne, said the traders.
The prices have now fallen only slightly. On Wednesday last MS rod was being sold between Tk 35,000 and Tk 39,000 per tonne, the traders said.
When contacted, the BSBA officials denied that the demand for the scrap ship had jumped up overwhelmingly in the world markets in recent years mainly due to construction of Olympic venues in China, rebuilding of the earthquake ravaged Gujarat of India and construction of skyscrapers in Malaysia.
The sector has been growing fast in the country as it has lured investments from big steel merchants of the country like, PHP Ship-Breaking Industries Limited, PHP Ship Scrappers Limited, PHP Ship-Breaking and Re-cycling Industries Limited, Sazeel Steel Limited and Super Steel Limited.
"It has been made possible by a policy guideline that has evoked competition among ship breakers," said Mamun.
According to BSBA statistics, at present 112 ship-breaking and re-rolling industries are the members of this organisation.
The BSBA officials said the investment in this sector has been rising tremendously as the demand for MS rod has gone up due to a booming construction sector.
The YPSA officials urged the government to take the ship-breaking industry under the ministry of industry and make a labour policy suitable to the condition prevailing in Bangladesh.
"Under such a policy the booming ship-breaking industry could generate a huge number of employments in the country," the YPSA official said.
|