Bangladesh: Bulk ferrous scrap imports rise 17% y-o-y in 9MCY'24

• US emerges as leading supplier
  
  
• Imports from Australia resume
  
  

Bulk ferrous scrap imports to Bangladesh saw an increase of 17% y-o-y in January-September 2024 (9MCY'24), to 2.51 million tonnes (mnt) from 2.15 mnt during the same period last year. The country, a major bulk scrap importer in South Asia, witnessed a surge in volumes due to improved demand, with the majority of bookings from the US, Australia, and Japan.

The rise in import volumes in 9MCY'24 was primarily due to an increase in bulk ferrous scrap arrivals in the latter half of the period (June-September 2024), driven by heightened purchases by bulk scrap-consuming steel mills.

On a monthly basis, the country imported 319,779 tonnes (t) in September 2024 compared to 319,232 t in the previous month, largely stable. In contrast, the import volume witnessed a slight decrease of 3% compared to September 2023, when imports were 329,137 t.

Price trends

• BigMint's monthly average price assessment for US-origin bulk HMS (80:20) stood at $381/t CFR Chattogram in September as against $395/t CFR in August.
  
  
• BigMint's monthly average price assessment for Japan-origin bulk H2 stood at $375/t CFR Chattogram in September as against $398/t CFR in August.
  
  

Despite a drop in prices, bulk ferrous scrap import volumes in Bangladesh remained stable due to the absence of rebar and finished steel demand. The rainy season and recent floods across major districts have hampered the supply chain, construction operations, and government-approved project activities.

Additionally, the country continues to face political instability following the Prime Minister's resignation. An unstable economic environment has led to smaller mills struggling with issues related to letters of credit (LCs).

Country-wise breakup

• Imports from the US: In 9MCY'24, imports increased by 26% to 1,190,882 t from 941,528 t during the same period last year. September saw a significant decrease in bulk scrap imports from the US, with a nearly 20% m-o-m fall to 157,677 t from August's 198,192 t. Meanwhile, compared to September 2023, imports were up 18% from 133,443 t. As major steelmakers were absent in the import market, owing to bearish scrap consumption and rebar sales, major bookings were not made from the US, though global scrap prices continued to move downward in September.
  
  
• Imports from Japan: In 9MCY'24, imports from Japan increased by 14% to 327,489 t from 288,412 t during the same period last year. Bangladeshi importers procured approximately 54,629 t of ferrous scrap from Japan in September, a significant increase of 35% compared to the 40,506 t imported in August. Compared to the same month last year, imports were up significantly by 88% from 29,084 t.
  
  
• Imports from Indonesia: In 9MCY'24, imports surged by 27% to 216,629 t from 170,150 t in the same period last year. In September 2024, scrap imports from Indonesia totalled 44,226 t, an increase of 14% m-o-m from 38,890 t in August 2024 and a significant decrease of 48% y-o-y from 84,420 t in September 2023.
  
  
• Imports from Australia: In 9MCY'24, imports increased by 23% to 352,702 t from 286,337 t during the same period last year. Imports from Australia remained active in September 2024, with bulk scrap imports totalling 45,598 t, following nil imports in August.