Bangladesh: Bulk scrap imports bounce back in Sept on optimistic steel outlook

Bangladesh recorded a rise of 58% m-o-m in its bulk ferrous scrap imports in Sept'21, as per vessel line-up data compiled by SteelMint. The country, which is a major bulk ferrous scrap buyer from South Asia, imported 0.30 mn t of scrap in September as against 0.19 mn t in August, according to data maintained with SteelMint.

The US continued to be the largest scrap exporter at 0.22 mn t in September followed by the UK and Australia at 44,641 t and 27,281 t, respectively.

The Bangladesh government had announced a lockdown from 23 Jul'21 till 10 Aug'21, which shut down steel mills, bringing manufacturing activities to a halt. This resulted in limited bulk scrap bookings during the period. However, with the lifting of lockdown restrictions, mills resumed bookings.

While competitive markets like Vietnam and Taiwan are already paying a high price, bulk offers from the US to Bangladesh have also witnessed an increase. Bangladesh mills have raised enquiries for bulk scrap bookings for Nov'21 shipments, SteelMint understands. However, due to higher offers from Japan, mills have also been seen actively booking containerised HMS of Dubai and other origin.

SteelMint's assessment for US-origin HMS bulk scrap on 29 Sept'21 stood at $525/t CFR Chittagong, an increase of $10/t on a weekly basis. Bulk Japanese H2 scrap offers are at $555-560/t CFR Chittagong.

According to bookings recorded by SteelMint, Bangladesh-based mills had booked around 3 bulk vessels from the US and one from Australia in early Sept'21 whose shipments will be made in Oct'21.

Outlook
The imported bulk scrap trade is expected to remain active in the coming days as the monsoon is about to get over, which will usher in the construction season in Bangladesh. This will spur steel consumption, and keep demand for imported scrap buoyant.