Bangladesh: Bulk ferrous scrap imports drop 24% m-o-m in Dec'22

Bangladesh, the third largest ferrous scrap importer in 2022, saw a fall in the volume of bulk scrap imports for the second successive month, in December 2022. Imports declined by 24% m-o-m to 186,151 t tonnes (t) in December against 243,697 t tonnes (t) in November, as per Customs data maintained with SteelMint. The decline in bulk scrap imports continues after achieving an all-time high volume in October 2022.

However, bulk scrap imports by the country increased by 53% y-o-y to 3.80 mnt in the calendar year 2022. Bulk scrap imports dropped significantly due to the LC opening issue whereas shipments from the US were mostly down since active buyers from India attracted the suppliers at workable prices.

Bangladesh's total ferrous scrap import volume in December was 0.247 mnt out of which 76% was in bulk and the rest, containers.

Country-wise breakup

• Imports from the US down m-o-m: The US, a top bulk scrap supplier to Bangladesh, witnessed a sharp decline in its export volume at 31,616 t in December as against 61,245 t in November. Moving down by 48% m-o-m. Bangladeshi buyers were unable to acquire much of US material due to weak demand from end-users in the market.
  
  
• Imports from Netherlands down: Supply from the Netherlands saw a 51% decline in December at 34,536 t as compared to 70,408 t in November.
  
  
• Imports from Japan decrease: Another prominent high-grade scrap supplier, Japan, also recorded a 50% drop in its scrap exports because of lesser consumption by Bangladeshi buyers. The volume dropped to 25,650 t in December as compared to 51,363 t in the previous month. The increased domestic demand in Japan and high offers kept sales to Bangladesh slow.
  
  
• Imports from Venezuela resume: Bulk buyers found disparity in bids-offers from the US and Japan. Hence, they shifted their interest to Venezuela. Imports from Venezuela resumed after a 2-month pause and recorded a volume of 35,155 t in December, a 7% rise as compared to 32,929 t in September.
  
  

Price trends

SteelMint's monthly average price assessment for US-origin bulk HMS (80:20) stood at $384/t CFR Chittagong in November as against $421/t CFR in October.

SteelMint's monthly average price assessment for Japan-origin bulk H2 stood at $402/t CFR Chittagong in November as against $429/t CFR in October.

Outlook

Bangladeshi buyers were less active in the past few months due to issues with LC openings. However, due to the limited inventory with steel mills, imported scrap trades might improve in the near future. However, the LC issue still remains a major obstacle.