SteelMint learned from market sources that, Bangladesh Roads and Highways Department (BRHD) has imposed a weight restriction on gross vehicle weight (GVW) which is 40 MT. This means maximum cargo scrap tonnage a container (20ft or 40ft) can carry, is 22 MT.
This problem is quite critical in 14 Wheelers trailers carrying containers on it which generally weighs above 40 MT while traveling on to the transport roads.
The 14 wheeler trailers itself weighs around 14 MT and an empty container weighs around 2.3 MT to 3.4 MT, this implies in order that Gross Vehicle Weight does not exceed 40 MT then Net material weight loaded into the containers must not exceed 22.6 MT. Thus net material weight will get restricted to 22 MT in order to keep the load under 40 MT.
How will it impact containerized scrap imports to Bangladesh?
This announcement is likely to make the containerized scrap imports to Bangladesh costlier as with weight restrictions per MT freight will also move up. Currently up to 25-27 MT scrap is stuffed in 20ft containers which will now be restricted to 22 MT. Thus around 2-3 MT lesser scrap will be carrying afterward in single cargo.
“This will increase the cost of scrap imports for Bangladeshi mills by USD 20-30/MT. For instance, if freight for a container carrying 27 MT scrap is USD 2500 (USD 92 per tonne of scrap) then the freight for the same container carrying 22 MT scrap would be USD 113/MT.” said a scrap supplier.
As per sources, the Bangladesh mills will get an extension of three months before this new weight restriction is imposed.
Bangladesh scrap imports increased significantly this fiscal –
During Jan-Sept’17, Bangladesh imported total 12,69,777 MT ferrous scrap out of which 45% (563,657 MT) share was occupied by bulk imports while remaining 55% (706,120 MT) volumes were imported in containers.Bangladesh has witnessed a sharp rise in its scrap imports both in bulk as well as in containers.
Bangladesh has witnessed its fifth consecutive rise in its bulk scrap imports in Nov’17 since Jul’17. The scrap imports in Nov’17 hit highest in CY17. The country has imported 177,950 MT bulk ferrous scrap in Nov’17. Thus Bangladesh registered 44% growth M-o-M in Nov’17 against 123,450 MT bulk ferrous scrap imports in Oct’17.
During Jan-Nov’17, Bangladesh imported 0.89 MnT bulk ferrous scrap, up 46% Y-o-Y as the imports were summed at 0.61 MnT during the same time period of last year. United State remained largest exporter of ferrous scrap to Bangladesh followed by Japan and Netherland respectively.
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