Bangladesh bulk ferrous scrap import shipments climb 55% in Oct'20

Bangladesh's bulk ferrous scrap imports rose by 55% on a monthly basis and stood at 235,720 t in Oct'20, as per vessel line up data maintained with SteelMint. A total 10 bulk scrap vessels arrived in Oct'20. The USA has exported four bulk cargoes, carrying 132,631 t in Oct'20, whereas other major supplier Japan exported six vessels of 103,089 t of scrap.

Finished steel demand has recovered after rainy season resulting in active bookings for bulk scrap cargoes for Oct'20 deliveries, considering winter season is a favourable time for construction activities. However, a firm demand recovery is still awaited as domestic steel prices haven't picked up yet.

During July month the continued Bangladeshi Covid-19 crisis and a severe monsoon flood in the northeast of India and much of Bangladesh were blamed for squeezing steel demand. However, from Aug'20, active bookings have been seen.

Quantity in t
Source: SteelMint vessel line up provisional data

Outlook - According to SteelMint, Bangladesh based steel mills had booked around 80,000-100,000 t of bulk scrap in the month of Sep'20, which are likely to arrive in Bangladesh in Nov'20. Further in Oct-early Nov'20 it was heard that mills have booked over 170,000 t scrap. It seems Bangladesh mills are actively restocking cargo in order to avoid scarcity due to winter shortage.