Bangladesh: Bulk ferrous scrap imports slip over 40% m-o-m in July

Bangladesh, a major bulk ferrous scrap buyer, saw a drop of 42% m-o-m in its scrap import volumes in July 2022. The country imported 0.19 million tonnes (mnt) of bulk scrap last month compared to 0.33 mnt in June 2022, as per SteelMint's vessel line-up data.

The sharp currency depreciation, bid-offer disparity, and weak steel demand due to limited working hours and labour shortage continued to weigh on imported scrap trade throughout the month.

On a y-o-y basis too, the country's bulk scrap imports declined by 24% compared to 0.25 mnt in July 2021.

Country-wise data-

• Imports from US largely stable: Imports from USA, the largest bulk scrap supplier to Bangladesh, remained largely stable at 0.16 mnt in July 2022 as against the volumes seen in the previous month. Buyers booked US-origin bulk cargoes at lower offers compared to other origins. Thus, imports from the States accounted for 45% of Bangladesh's total bulk scrap imports in the month.
  
  
• Imports from Japan rebound: Japanese bulk H2 scrap imports into Bangladesh increased 50% m-o-m to 0.03 mnt in July as against 0.02 mnt in June.
  
  

Price trend

SteelMint's monthly average price assessment for US-origin bulk HMS (80:20) scrap stood at $449/t CFR Chittagong in June as against $543/t CFR in May.

Outlook
Market participants believe that sentiments are likely to remain sluggish as buyers have opted to wait and watch amid unstable market conditions. The ongoing monsoon, currency devaluation, power outages, and Letter of Credit-related challenges may keep buyers on the sidelines.