Bangladesh: Ferrous scrap imports increase by 10% m-o-m in Jul'23, Hitting 9-month high

Bangladesh, a prominent scrap importer in the South Asian region, has witnessed a total scrap import of 4.52 lakh tonnes, including bulk and container in July 2023. The imports have registered an increase of 10% m-o-m from 412,621 t in June, 2023. Interestingly, this is the highest scrap imports in the last nine months.

Notably, around 367,769 tonnes (t) were bulk share out of total scrap imports which are 81% of the total volume, quite high as compared to imports via container route. However, the bulk imports have increased by 19% m-o-m from 307,793 t in June 2023.

Meanwhile, supply from Australia and the US with ease in the letter of credit (LC) opening restrictions from Bangladeshi banks have supported the scrap imports.

Country-wise bulk imports

• Imports from the US up by 62%: Scrap import shipments from the US into Bangladesh have increased by 62% m-o-m to around 159,233 t in the month under review as against 98,001 t in June. On the other hand, y-o-y, shipments declined slightly by 1% y-o-y from 161,650 t in July 2022.
  
  
• Imports from Australia decline: Imports from Australia stood at 58,075 t in July as compared to 70,241 t recorded a month ago. Imports dropped by 17% m-o-m.
  
  
• Imports from Japan down: Imports from Japan fell by 43% m-o-m to 40,680 t from 71,099 t in June. However, y-o-y, imports have gone up by 28% as compared to 31,800 t in July 2022.
  
  

Outlook: Major scrap buyers are active in the market for post-monsoon production. Steel producers are looking for a better price, while the increased cost of production and volatile economic situation have dampened the domestic market situation. Import volumes are expected to remain at the same level or increase nominally if bulk buyers see reliable price quote from suppliers like the US, Japan and Australia.