Bangladesh, a key ferrous scrap importing country in South Asia, observed a sharp growth of 88% in bulk imports of the material on a monthly basis. The country imported 0.30 mn t of scrap via bulk shipments in Apr’21 as compared to March’s 0.16 mn t, as per vessel line-up data maintained with SteelMint. Mills remained active in restocking scrap cargoes ahead of the Ramadan holidays which resulted in the spike in imports.
Out of the 12 bulk vessels that arrived in Apr’21, the US was the largest exporter with six vessels, carrying 0.18 mn t of bulk ferrous scrap in April. Japan remained the second largest source for Bangladesh at 0.09 mn t, followed by New Zealand, at 0.02 mn t of scrap respectively.
Imported scrap offers up: Bulk scrap prices from the USA and Japan showed a north-ward trajectory, rising continuously in Mar’21. As per SteelMint’s assessment, the average H2 scrap prices for bulk Japanese monthly consignments had increased by $40/tonne (t) m-o-m to $465/t, CFR Bangladesh in March.
Mills raise rebar offers: Major steel mills in Bangladesh have raised rebar prices to a monthly average of BDT 64,750/t in Mar’21 vis-a-vis BDT 62,500/t in Feb’21. Higher production costs and improved demand pushed up offers. Demand for finished steel resulted in active bookings for bulk scrap cargoes for construction activities as well.
Outlook: Due to limited offers from Japan, import volumes from this country are expected to fall in the short term. Import bookings in the month of April remained slightly lower amidst existing inventories, increasing COVID concerns over oxygen constraints and lockdown impacting finished steel sales. In addition, trades have remained comparatively slow in the holy Islamic month of Ramadan.
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