Bangladesh: Bulk ferrous scrap imports largely stable m-o-m in Jan'23

Bangladesh, the third largest ferrous scrap importer in 2022, recorded 185,744 tonnes (t) of ferrous scrap imports m-o-m in January, 2023 from 186,151 t in December 2022, stood largely stable with a slight decline of 0.22% as per Customs data maintained with SteelMint.

Similarly, bulk scrap imports by the country fell by 19% y-o-y from 229,175 t in January, 2022. Bulk scrap imports dropped significantly due to the prolonging Letters of Credit (LCs) issues in the country.

Buyers from Bangladesh preferred material from the US and Australia as prices were more tradable over disparity from other destinations.

Country-wise breakup

• Imports volume from the US rises: The US, a top bulk scrap supplier to Bangladesh, witnessed a drastic rise in its export volume at 101,767 t in January, 2023 as against 31,616 t in December, 2022 significantly up by 222% m-o-m. Imports from the US were also drastically up by 219% from 31,900 t in January, 2022 as against January 2023, after a pause related to LCs openings in the previous months.
  
  
• Imports from UK down: Ferrous scrap supply from the UK recovered from a three-month pause with 46,000 t in January 2023. The y-o-y volumes were down by 50% y-o-y from 91,844 t in January, 2022.
  
  
• Imports from Australia increase: The import volume from Australia was on a pause for a month and recovered with 37,977 t in January 2023. The volumes were up by 49% y-o-y from 25,432 t in January, 2022 as against January 2023.
  
  

Price trends

SteelMint's monthly average price assessment for US-origin bulk HMS (80:20) stood at $426/t CFR Chittagong in December as against $384/t CFR in November.

SteelMint's monthly average price assessment for Japan-origin bulk H2 stood at $418/t CFR Chittagong in December as against $402/t CFR in November.

Outlook

There is an increasing optimism that may bring some much needed liquidity into the country in the upcoming weeks, allowing end buyers to open L/Cs which might help in increase in import volume as compared to recent dull months.