Bangladesh: Bulk scrap imports reach 3 lakh tonnes in Jun'23; rise by 21% m-o-m

Bangladesh, a major bulk ferrous scrap purchaser in the South Asian scrap market, witnessed a 21% m-o-m rise in import volumes to 307,793 tonnes (t) in June 2023 compared to 255,196 t in May 2023. Imports in June 2023 were at an eight-month high since October 2022, crossing 3 lakh tonnes for the first time in this period.

However, y-o-y, imports were down by 6% in June 2023 as compared to 326,581 t in June 2022.

An increase in supply from the Netherlands, Japan, and Australia coupled with ease in letter of credit (LC) opening restrictions from Bangladeshi banks can be a prominent reason behind this rise in imports.

The US, Japan, Australia, and the Netherlands were the major suppliers in May.

Country-wise imports

• Imports from US down by 23%: Scrap import shipments from the US into Bangladesh have declined by 23% m-o-m to around 98,001 t in the month under review as against 127,444 t in May. Similarly, y-o-y, shipments declined significantly by 39% from 160,565 t in June 2022.
  
  
• Imports from Australia, Netherlands resume: Imports from Australia stood at 70,241 t in June as compared to nil shipments recorded in May. Shipments from the Netherlands resumed after five months and stood at 40,150 t in June.
  
  
• Imports from Japan up: Imports from Japan went up by 35% m-o-m to 71,099 t from 52,537 t in May. Meanwhile, imports from Venezuela, Belgium, and the UK were nil in the month.
  
  

Price trends

• SteelMint's monthly average price assessment for US-origin HMS (80:20) stood at $414.3/t CFR Chittagong as against $423.8/t CFR in May.
  
  
• SteelMint's monthly average price assessment for Japan-origin bulk H2 scrap stood at $413.3/t CFR Chittagong as against $411.4/t CFR a month ago.