Bangladesh’s bulk ferrous scrap imports rebounded in Sep’20 and stood at 151,624 t as compared to just 25,525 t in Aug’20, as per vessel line up data maintained with SteelMint.
Out of the total of seven bulk vessels arrived in Sep’20, the USA has exported three bulk scrap cargoes, carrying 95,101 t in Sep’20. Japan remained second largest source for Bangladesh scrap imports and exported four vessels with 56,523 t of scrap, higher by 121% m-o-m in Sep’20.
Active restocking by steel mills for scrap in Aug’20, boosted imports – Active restocking of scrap by Bangladesh based steel mills has been noticed in Aug’20, after remaining silent in July due to decline in inventories.
Quantity in t
Source: SteelMint vessel line up provisional data
Outlook – Domestic finished steel prices have improved slightly as compared to last month. Market insiders expect that demand would start to pick-up from October, considering winter season is a favorable time for construction activities, which may increase finished steel demand.
However, mills are still facing hurdles like – higher import duties, high taxes and impact of pandemic on new infrastructure projects.
We expect Bangladesh’s bulk scrap imports to remain supported in Oct’20 on optimistic steel demand outlook.
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