Bangladesh: Bulk Scrap Imports Up 21%; Steel Coil Imports Down 40% in Jul’19

According to bulk vessel line up data compiled by SteelMint, Bangladesh has witnessed third successive rise in bulk scrap import volume in Jul’19. Steel coil imports dropped 40% while HBI imports remained steady with single vessel arrived, interestingly, the country witnessed a single export shipment of mill scale to Vietnam while imports of semi-finish remained nil in Jul’19, the data showed.

— Bulk steel scrap imports – The country imported 175,884 MT bulk steel scrap in Jul’19 observing an increase by 21% on monthly premises as against 145,824 MT in Jun’19. Leading steelmakers were reported to have booked several bulk scrap cargoes during end-April & May months before the announcement of the country’s budget and arrival of monsoon which usually impact production activities every year. Out of total 6 bulk vessels arrived at berth in Jul’19, USA supplied the highest 3 vessels carrying 96,648 MT (55% share), Japan 2 vessels carrying 39,000 MT (22% share) and UK with 1 vessel carrying 40,236 MT (23% share).

Another 80,150 MT of steel scrap is at an expected position at Chittagong port and will arrive at berth in Aug’19 indicating Bangladeshi major mills like BSRM, Abul Khair, GPH Ispat would prefer to continue with sufficient inventories of steel scrap in hand. As per sources, despite a temporary slowdown, finished steel prices and demand likely to pick after Eid holidays scheduled in the first half of Aug’19.

It is expected that imposition of Advance tax likely to push finish steel prices by BDT 3,000/MT in coming days however, the clarity is awaited. Scrap oversupply situation in the domestic market on import of several ships for breaking operation likely to keep domestic scrap prices under pressure.

— Bulk coal imports – Coal imports remained nil for the third consecutive month in Jul’19 owing to monsoon and a seasonal fall in demand from Brick Industries. As per the vessel line-up data compiled by SteelMint, after witnessing a sharp rise in imports in Q1’2019, bulk coal imports could have also plunged amid sufficient inventories in hand.

— Bulk steel coil imports – Steel coil imports dropped by 40% M-o-M to 57,006 MT in Jul’19 from 95,484 MT in Jun’19. Japan, Korea and Taiwan supplied bulk steel coil vessel to Bangladesh comprising 24,370 MT, 18,700 MT and 13,936 MT each in Jul’19. However, steelmakers booked steel coil/HRC actively for Aug-September shipments on expected pick up in construction with nearing monsoon season end. As per vessel line-up, total around 74,634 MT of steel coil is expected to arrive at berth shortly in Bangladesh.

— Bulk HBI imports – Bangladesh bulk HBI imports recorded at 55,004 MT in Jul’19 observing stability on a monthly basis.

— The country’s self-sufficiency in billet production has resulted in observing nil billet import volumes for last 12 months.

— Although pig iron imports recorded nil in Jul’19, two vessels carrying around 59,290 MT of bulk pig iron from India are expected to arrive shortly.

— A vessel carrying 30,000 MT of mill scale was exported from Bangladesh to Vietnam in Jul’19. Vietnam remained the most preferred destination of Bangladeshi mill scale export over better price realization.