Bangladesh: Bulk ferrous scrap imports rebound over 60%, m-o-m, in August

Bangladesh, a major bulk ferrous scrap consumer, witnessed a significant recovery in scrap imports in August 2022 after shipments dropped last month. Imports rose 63% m-o-m in August to 315,521 tonnes (t) compared to 193,450 t in July, as per SteelMint data.

Shipments of bulk scrap resumed after the Eid holidays as the market witnessed a drop in prices of both container and bulk material. Mills started to restock material due to shortage of scrap in the regional market.

On a y-o-y basis, too, the country's bulk scrap imports increased by 64% compared to 192,553 t in August 2021.

Country-wise breakup-

• Imports from the US rise: The USA, the largest bulk scrap supplier to Bangladesh, retained the top spot among exporters in August with 195,691t as against 161,650 t in July, up 25% on the month. Offers by US suppliers were lower compared to other origins, which attracted Bangladeshi buyers to book more bulk scrap.
  
  
• Imports from Australia, Netherlands resume: Bangladeshi buyers resumed buying scrap from Australia and the Netherlands. The import volume from each country stood at 26,997 t and 32,987 t respectively.
  
  
• Imports from Japan nil: In the absence of Japanese scrap offers, Bangladeshi mills took advantage of low offers from other exporters like the EU and the USA. As suppliers are focusing on the domestic market, suppliers showed limited interest in the export market.
  
  

Price trend
SteelMint's monthly average price assessment for US-origin bulk HMS (80:20) stood at $436/t CFR Chittagong in July as against $449/t CFR in June.

Outlook
Bangladeshi bulk buyers are likely to restock inventory ahead of the winter season, which will keep the bulk market active in the near term. However, steep currency depreciation and production curtailment due to power cuts have dented the active scrap demand in recent times.