Magnum makes steely entry
Competition is set to intensify among 'greater-strength' rod makers as Magnum Steel Industries Ltd has entered the scene to tap growing demand for 500-grade steel in real estate and construction.
The product known as Magnum Supreme 500 has greater strength with ductility to make buildings safer, said Zahir H Chowdhury, managing director of Magnum Steel, at a press meet at Dhaka Reporters' Unity yesterday.
The company said yield strength of its 500-grade steel rod will be 72,500 pounds per square inch.
“It will be economical to use the 500-grade steel as the quantity needed for construction will be less," Zahir said.
Magnum Steel Chairman H Rashid Nizam and other senor officials were also present.
Located in Gazaria on the Dhaka-Chittagong Highway, Magnum Steel started making higher-grade rods as demand continues to rise due to growth in public works and real estate, which consumes about 22 lakh tonnes of steel a year.
Of the total quantity, demand for 500-grade rods will be as much as 4 lakh tonnes with BSRM being the pioneer in offering the product to builders.
“Our factory has a capacity to produce 100,000 tonnes of rod a year. We want to utilise more than half of the production capacity in the first year,” Zahir said.
“We expect the use of quality rods will continue to rise in line with a rise in real estate and construction works.”
According to the Magnum MD, 40-and 60-grade steel rods dominate the market, but their yield strength is much lower than 500-grade steel.
“It (500 grade) is the most powerful steel in the market now. Prices are a bit higher but builders should not compromise on quality,” he said, referring to reports on the possibility of earthquakes in Bangladesh.
He said Magnum steel, which has been produced since November, could be used in high-rises, industrial plants, residential blocks, bridges and culverts.
“We have started marketing our product recently to lure consumers, mainly high-rise constructors,” Zahir said.
The company offers a promotional price of Tk 43,500 a tonne to dealers for its brand Magnum Supreme 500-grade steel.
At present, the price of 60-grade steel rod is close to the price of 500-grade steel.