Bangladesh: Bulk ferrous scrap imports fall over 45%, m-o-m, in May'22

Bangladesh, a major South Asian bulk ferrous scrap buyer, registered a fall by 46% in imports in May 2022 to 0.21 million tonnes (mnt) compared to 0.39 mnt in April, according to vessel line-up data maintained with SteelMint.

Mills booked imported scrap in smaller quantities owing to its high offers to meet urgent needs. Also, there was limited end-user buying amid slow construction activities in the country.

However, scrap imports witnessed a significant hike of 62% compared to 0.13 mnt in May 2021.

Country-wise breakup-

• Imports from UK up: Imported scrap transactions from the UK regained momentum in May to 0.08 mnt from 0.03 mnt in April. Buyers received deliveries of the material after the holy month of Ramadan.
  
  
• Imports from USA drop: Imports from USA, the largest supplier of bulk scrap to Bangladesh, witnessed a fall m-o-m as buyers were less interested in booking cargoes amid the continuous hike in offers. Shipments of 0.07 mnt were recorded in May, down by 63% from 0.19 mnt in the previous month.
  
  
• Nil imports from Japan: Interestingly, Bangladesh's scrap imports from Japan remained nil in May. Due to higher offers of the Japanese material, Bangladesh buyers kept to the sidelines, waiting for clear market directions. Meanwhile, the country shifted to procuring UK- and US-origin material over cost-effectiveness.
  
  

Price trend

SteelMint's monthly average price assessment for USA-origin bulk HMS (80:20) scrap stood at $655/t CFR Chittagong in April as against $690/t CFR in March.

Outlook

As bulk freight rates have come down slightly, major mills have resumed bookings. It is expected that Bangladesh will continue to avoid making bulk cargo bookings from Japan.