Bangladesh, a key ferrous scrap importing country in South Asia, witnessed a sharp fall of 57% month-on-month (m-o-m) in bulk imports of the material The country imported 127,723 tonnes (t) in May’21 as compared to 295,705 t in Apr’21, as per vessel line-up data maintained with SteelMint. Bulk scrap imports dropped in May’21 due to higher inventories at mills.
Out of the seven bulk vessels that arrived in May’21, Japan was the biggest exporter with five vessels, carrying 92,808 t of bulk ferrous scrap, followed by the U.S. at 34,915 t. Increasing Covid-19 cases and lockdown are affecting finished steel sales. In addition, trade was slow in the Ramadan month.
Bulk scrap prices from the U.S. and Japan showed a northward trajectory in Apr’21. Disparity in bids and offers kept buyers cautious while Japanese suppliers were more involved in trade with China at higher prices. Chinese buyers were seen actively restocking ahead of the Japan’s Golden Week holidays in Apr’21. As per SteelMint’s assessment, the average H2 scrap prices for bulk Japanese monthly consignments had inched up by $2/tm-o-m to $476/t, CFR Bangladesh in Apr’21.
Bangladesh’s primary mills raised rebar prices to a monthly average of BDT 71,000/t in Apr’21 vis-a-vis BDT 69,250/t in Mar’21, owing to higher production costs whereas, rebar prices have been hammered by low demand in the domestic market because of the ongoing battle with Covid-19.
Outlook
According to SteelMint’s records, Bangladesh’s steel mills had booked around 180,000 t bulk scrap from the U.S. and Australia in Apr which may arrive in June/July. However, in May, mills are more focused on booking containerised scrap rather than bulk, owing to higher offers.
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