Bangladesh: Bulk ferrous scrap imports rise by 37% m-o-m in September

Bangladesh's bulk ferrous scrap imports increased by 37% to 290,186 tonnes (t) in September 2023 in comparison with 211,207 t in the previous month, as per SteelMint data. However, y-o-y, imports decreased by 28% compared to 402,798 t in August 2022.

In September 2023, the country's total ferrous scrap imports reached approximately 445,000 t, witnessing a 9% marginal hike as compared to 410,000 t in August 2023. Moreover, bulk shipments made up 65-70% of the total, while the remainder was in containers.

Country-wise bulk imports

Imports from the United States: Scrap imports from the United States to Bangladesh doubled from 70,320 in August to 133,443 t in September. On a y-o-y basis, these imports experienced a modest 1% increase when compared to the 131,859 t recorded in the same period the previous year.

Imports from the UK: Scrap imports into Bangladesh from the UK stood at 76,831 t in September, registering a whopping rise of 92% as against mere 39,962 t seen a month ago. However, annual imports fell 4% against 79,727 t in September 2022.

Imports from Japan: In September, Japanese mills exported approximately 29,084 t of scrap to Bangladesh, representing a 34% decrease compared to the 44,012 t imported in August. Furthermore, when compared to September 2022, imports from Japan plummeted by 50%, down from the 57,626 t recorded in the same period last year.

Imports from New Zealand: Imports of ferrous scrap from New Zealand amounted to 31,486 t in September, which is noteworthy as there were no imports from New Zealand in the preceding month of August.

Price trends

SteelMint's monthly average price assessment for US-origin bulk HMS (80:20) stood at $423/t CFR Chittagong in September, up by $16/t as against $407/t CFR in August.

SteelMint's monthly average price assessment for Japan-origin bulk H2 scrap stood at $419/t CFR Chittagong in September, as against $410/t CFR a month ago.

Outlook

The import of ferrous scraps in Bangladesh is anticipated to continue facing challenges and pressure. Primarily attributed to delays in the opening of Letters of Credit (LCs) and a sluggish performance in the finished steel sector.