Bangladesh's bulk ferrous scrap imports rise 15% y-o-y in H1 CY'24

Bangladesh, a key importer of scrap in South Asia, witnessed an uptrend in its bulk ferrous scrap imports in H1CY'24. The country imported a total of 1.48 million tonnes (mnt) of scrap, an increase of 15% y-o-y versus 1.29 mn t in H1CY'23.

This surge in imports was driven by pent-up demand since the national elections in January, enhanced foreign exchange reserves, and improved letter of credit (LC) approvals from banks. Additionally, construction and infrastructure activities saw an uptick post-election.

The rise in imports of bulk trade volumes is largely due to increased US exports from March to June, totalling 0.59 mnt, which accounts for around 40% of imports in H1. Major steelmakers with better financing facilities preferred US West Coast scrap due to reliable sourcing.

M-o-m, bulk ferrous scrap imports were recorded at 0.35 mnt in June compared with 0.21 mnt in May, while imports increased by 13% y-o-y compared with 0.31 mnt in June 2023.

Similarly, as per market reports, Bangladesh's total ferrous scrap imports rose y-o-y by 26% to 2.35 mnt in H1 CY'24 as compared to 1.86 mnt in H1 CY'23.

Country-wise imports

US: Bangladeshi saw a significant increase of 20% in bulk scrap imports from the US at 0.71 mnt against 0.59 mnt in H1. From the US alone, Bangladesh imported around 50% of its bulk scrap volumes during the review period. M-o-m, imports increased by 124% at 206,806 t in June compared to 92,524 t in May. Similarly, on a y-o-y basis, import volumes are inclined by 111% y-o-y as compared to 98,001 t recorded in the same month of the previous year.

Australia: Imports from Australia to Bangladesh increased by 65% compared to 0.17 mnt in H1CY'23. Out of total imports, 20% comprised bulk trades. In June, imports increased to 87,236 t from 26,887 t in May. On a yearly basis, import volumes rose by 24% compared to 70,241 reported in June last year.

Japan: Bulk ferrous scrap imports from Japan declined by 29% to 0.15 mnt in June from 0.21 mnt in May. From Japan, the trade volume comprises around 10% of the bulk scrap during the first two months of H1CY'24. Y-o-y, import volumes decreased by 51% against 71,099 t in June 2023. The bulk trade volume was low majorly due to the absence of Bangladesh in Kanto scrap export tenders in November and December last year.

Price trends

BigMint's monthly average price assessment for US-origin bulk HMS (80:20) stood at $405/t CFR Chattogram in June as against $404/t in May. Our monthly average prices of Japan-origin bulk H2 stood at $396/t CFR Chattogram in June as against $400/t CFR in May.