Bangladesh: Bulk ferrous scrap imports fall by 20%, m-o-m, in Oct'21
Bulk ferrous scrap imports by Bangladesh recorded a decline of 20%, m-o-m, in Oct’21, as per vessel line-up data maintained with SteelMint. The country, a major...
Bulk ferrous scrap imports by Bangladesh recorded a decline of 20%, m-o-m, in Oct'21, as per vessel line-up data maintained with SteelMint. The country, a major bulk ferrous scrap buyer in South Asia, imported 230,000 t of scrap in October as against 300,000 t in Sep, as per SteelMint data. On y-o-y basis, too, imports fell by 17% from 240,000 t in Oct'20.
The US continued to be the largest scrap exporter to Bangladesh at 200,000 t in Oct as against 220,000 t in Sep.
Import volumes dropped because of subdued finished steel sales, an extended monsoon, and particularly because buyers opted to maintain a wait-and-watch approach for further price corrections in the coming days.
One major reason for the decline in scrap imports is unavailability of containers and high freight charges, which are matters of pressing concern for Bangladesh-based traders. Hence, the mini mills in the country have shifted to domestic scrap to meet their requirements.
Market highlights
- Export volumes decline from US and Japan: The US exported 200,000 t of scrap in Oct, down 9% as against 220,000 t in the previous month.
On the other hand, Japan exported 7,522 t in Oct after a month's gap. Exports by Japan in Aug totalled 17,508 t, a decrease of 57%, m-o-m. No major deals were done by Bangladeshi buyers as the prices of Japanese scrap were high amidst surging freight rates. At the same time, Japanese suppliers were more inclined to channel supplies toward the domestic market due to strong demand and better prices.
- Price trends
SteelMint's assessment for US-origin bulk HMS in Sep stood at $525/t CFR Chittagong, a decrease of $20/t on a m-o-m basis as against $545/t CFR in Aug.
Outlook
It is expected that the ferrous scrap import market in Bangladesh may make a comeback ahead of winter restocking and during the peak season for building construction in the coming months. Bookings from the UK and EU are likely to pick up due to limited availability of material in other regions.
