Steel millers fear losses as gas crisis deepens in Ctg

Steel re-rolling mills in Chittagong fear huge losses as an acute gas crisis has forced them to cut their production by half, millers said yesterday.
The crisis loomed over at least 50 big and small steel re-rolling mills in two industrial zones in Sitakunda and Nasirabad after the gas supplier instructed them to shut their production for three days a week.
These mills account for 70 percent of the country's total steel production, according to the millers.
Karnaphuli Gas Distribution Company Ltd (KGDCL) asked the industrial units to cut production on October 26.
Twenty re-rolling mills in Nasirabad industrial area, including Bangladesh Steel Re-rolling Mills Ltd, Ratanpur Steel Re-rolling Mills, Bayezid Steel Mills Ltd, Islam Steel Mills and Benz Steel Mills, were the first to follow the instruction.
Later, 30 steel makers, including GPH Ispat, Kabir Steel Re-rolling Mills, Abul Khair Steel Mills and Shima Steel Mills, located in the areas from Kumira in Sitakunda to City Gate, followed suit.
Steel makers formed human chains in front of their factories on Monday, protesting the KGDCL decision. They feared the factories would turn into losing concerns if they cut their production for long.
M Firoze, head of marketing and product development at BSRM, said most factories would incur huge losses.
If a factory has to cut 43 percent to 45 percent of its production it will fail to pay bank loans, Firoze said.
"These are the process industries, and production in these factories should run round the clock," he said. "We keep the factories shut only during big festivals like Eid."
Md Almas Shimul, director of GPH Ispat, said they could run their factory only for a day in the last one week. He feared his company would incur a huge economic loss if the crisis continues.
KGDCL officials said the gas crisis in Chittagong worsened in the last one year as supply from Sango gas field declined to 13.1 million cubic feet per day from 35 mmcfd a year ago.
Six months ago, supply from Bangura gas field was at 140 mmcfd, which went down to 100 mmcfd.
Sanwar Hossain Chowdhury, managing director of KGDCL, said the situation would improve by the end of November as they expect Semutang field would start gas supply in a month.
Semutang could supply around 20 mmcfd gas, he said.