Bangladesh: Bulk scrap imports up 15% in Jan'22 on active buying from EU

Bulk ferrous scrap imports into Bangladesh, a major buyer in South Asia, increased by 15% m-o-m in Jan'22, as per vessel line-up data maintained with SteelMint. The country imported 0.23 million tonnes (mnt) in Jan'22 as against 0.2 mnt in Dec'21.

Imports from USA drop, rise from EU

Imports from USA plunged by 74% to 31,900 t in Jan'22 as against 123,634 t in Dec'21. Limited bulk offers from the country resulted in lower bookings. Also, high offers forced buyers to prefer other origins material.

For instance, Bangladesh-based mills actively booked EU-origin cargoes on price competitiveness and imports volumes from the UK were seen at 91,844 t in Jan'22, an exceptional hike of 118% as against 42,035 in Dec'21.

Imports from Japan resumed in early-Jan'22 after remaining muted in Nov'21 and Dec'21. Total import volumes in Jan'22 were recorded at 18,787 t.

Bangladesh's imported scrap market regained momentum in Jan'22 with active bookings seen for fresh material throughout the month. Increasing demand ahead of the peak construction season in Feb-Mar kept mills active in the imported scrap market.

Price trend
SteelMint's monthly average price assessment for US-origin bulk HMS in Dec'21 stood at $536/t CFR Chittagong, a decrease of $30-40/t on a m-o-m basis as against $577/t CFR in November.

Outlook
It is expected that Bangladesh's ferrous scrap imports market may continue to remain positive owing to the resumption of construction activities and supportive finished steel prices. Imports from Japan are expected to remain on the lower side but those from USA and the EU may remain supported.