Bangladesh: Bulk ferrous scrap imports remain largely stable m-o-m in Feb’22

Bulk ferrous scrap imports into Bangladesh, a major buyer in South Asia, remained stable m-o-m in Feb’22, as per the vessel line-up data maintained with SteelMint.

The country imported 0.23 million tonnes (mnt) in Feb’22 as against same volumes seen in the previous month.

USA was the top exporter with 60,581 tonnes (t), followed by the Netherlands and the UK with 44,176 t and 38,498 t, respectively in Feb’22.

On a yearly basis, scrap imports witnessed an exceptional hike of 109% as against 0.11 mnt in Feb’21.

Imports from EU drop, rise from USA

Imports from USA surged 90% to 60,581 t in Feb’22 as against 31,900 t in Jan’22. Reasonable offers from the country resulted in improved bookings which made buyers prefer US-origin material over Japan’s.

For instance, Bangladesh-based mills, which had held back in booking EU-origin cargoes from the UK, were seen booking 38,498 t in Feb’22, a plunge of 58% as against 91,844 mn t in Jan’22.

Imports from Japan were seen at nil in Feb’22. Offers from the Japanese suppliers remained low, with buyers showing low interest in booking cargo. On the other hand, Japanese suppliers too, were not willing to lower their offers further amidst stronger domestic demand and tight availability on lower auto production.

Bad weather impacts construction: The peak season (November to March) is usually good for construction activities but, this year, due to the high prices of all construction materials, end-users did not buy much and opted to wait before starting new projects, SteelMint learnt from sources. Continued rains in most of the areas made the situation worse which led to lower bookings of material.

Price trend
SteelMint’s monthly average price assessment for UK-origin shredded scrap in containers stood at $564/t CFR Chittagong in Jan’22, as against $561/t CFR in December.

Outlook
It is expected that Bangladesh’s ferrous scrap imports market may remain positive owing to the resumption in construction activities and favourable finished steel prices. Imports from Japan are expected to remain on the lower side owing to lack of clarity in prices but those from the US and the EU may remain supported.