Bangladesh: Bulk Ferrous Scrap Imports Jump Three Folds in May'19
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As per the vessel line up data compiled by SteelMint, Bangladesh has observed a sharp jump in bulk ferrous scrap imports on monthly premises in May'19. Scrap restocking ahead of Ramadan month had picked up as scrap imports fell significantly in Apr'19.
Bulk ferrous scrap imports rise 220% M-o-M - The country imported 101,911 MT bulk ferrous scrap in May'19 observing a sharp jump of 220% M-o-M as against 31,870 MT bulk scrap imports recorded in Apr'19. After the arrival of single bulk scrap cargo in April month, three bulk cargoes have arrived at berth comprising 101,911 MT from USA in May'19.
On low global imported scrap prices and average finish steel demand, few steelmakers reported to have booked bulk cargoes in April-May'19 in preparation of post-Ramadan production activities
Bangladesh's aggressive buying of large LDT ships somehow slowed down in May'19 however, Chattogram still remained the highest paying market for Ship recycling activities. Possibility of the imposition of new taxes in the upcoming budget which is scheduled in mid-June and sufficiently filled yards likely to keep Bangladeshi recyclers away from major buying in coming 2-3 months.
Bulk coal imports drop to nil volume amid poor demand - Country's coal imports dropped sharply to nil volume in May'19 against 285,200 MT coal imports recorded in Apr'19. It is expected that bulk coal imports to remain very minor in the upcoming two months (June-July) amid heavy monsoon affecting construction steel demand significantly resulting in production cuts in the country.
On the other hand, demand from the brick industries would also remain very low impacting Bangladesh appetite for imported coal.
As per the data maintained with SteelMint, imports have surged 81% Y-o-Y to 4,669,927 MT during the first 11 months of Bangladeshi fiscal, primarily as a result of the temporary closure of Coal sales to local market by Barakupuria Mining Company.
Bulk steel coil (HRC) imports decline 7% M-o-M - The country imported 79,830 MT bulk steel coil in May'19, down 7% M-o-M against 85,846 MT in Apr'19. Five bulk steel coil cargoes each one from India (10,458 MT), Japan (29,200), Malaysia (5,390 MT), Taiwan (24,870 MT) and Indonesia (9,912 MT) have arrived at berth in May'19.
No bulk HBI and Pig Iron imports shipments were seen in May and Mill scale exports remained nil while with the country becoming self-sufficient in billet making billet imports have remained nil since Jul'18.
Bangladesh bulk imports commoditywise FY19 -
| Commodity | Jan-May'19 | Jan-May'18 | % Y-o-Y Change | FY19 (Jul'18-May'19) | FY18 (Jul'17-May'18) | % Y-o-Y Change |
| Coal | 2,584,023 | 1,134,978 | 127.67% | 4,669,927 | 2,581,818 | 80.88% |
| Scrap | 546,114 | 359,060 | 52.10% | 1,126,856 | 975,690 | 15.49% |
| HBI | 169,900 | 185,000 | -8.16% | 314,870 | 314,700 | 0.05% |
| Steel Billet | 0 | 50,000 | -100.00% | 53,867 | 131,700 | -59.10% |
| Steel Coil | 440,592 | 299,248 | 47.23% | 757,673 | 677,851 | 11.78% |
| Pig Iron | 63,000 | 50,000 | 26.00% | 136,200 | 81,500 | 67.12% |
Quantity in MT,
Source: SteelMint Stats
