Bangladesh: Bulk ferrous scrap imports drop nearly 60% m-o-m in Nov'22

Bangladesh, a prominent bulk ferrous scrap importer, received a lesser volume of bulk scrap in November 2022. Imports dipped by 58% m-o-m to 243,697 t tonnes (t) in November against 581,094 t tonnes (t) in October, as per SteelMint data. The country saw a decline in bulk scrap imports after achieving an all-time high volume last month.

Bulk import volumes were slightly up by 5% y-o-y against 232,161 t seen in the corresponding period last year. Bulk scrap imports dropped significantly due to the LC opening issue whereas shipments from the US were mostly absent amid the sluggish finished steel market.

A total of 3.61 mnt has been imported by the country during January-November this year, an increase of 58% compared to January-November last year.

Country-wise breakup

Imports from the US drop m-o-m: The US, a top bulk scrap supplier to Bangladesh, was not the largest exporter in November at 61,245 t as against 317,680 t in October, significantly down by 81 % m-o-m. Bangladeshi buyers were unable to acquire much US materials due to weak demand from end-users in the market.

Imports from Netherlands down: Supply from the Netherlands saw a 32% decline in November at 70,408t as compared to 103,676 t in October. However, import volumes rose 62% y-o-y as compared to 43,381 t in November 2021.

Imports from Japan decrease: Japanese materials were 34% less consumed by Bangladeshi buyers, as volume dropped to 51,363 in November as compared to 78,064 t in the previous month.

Imports from Australia up m-o-m: Bulk Imports from Australia increased by 12% to 60,681 t in November, as compared to 53,976 t in October.

Price trends

SteelMint's monthly average price assessment for US-origin bulk HMS (80:20) stood at $421/t CFR Chittagong in October as against $416/t CFR in September.

SteelMint's monthly average price assessment for Japan-origin bulk H2 stood at $429/t CFR Chittagong in October as against $446/t CFR in September.

Outlook

With problems in LC openings, buyers from Bangladesh are likely to procure less as compared to the last few months. Somehow, lesser volumes in containers may continue by some market participants.

On the other hand, prices of bulk Japanese H2 and bulk HMS (80:20) of US origin are supposed to be down in the near term.