Bangladesh recorded a drop of 12% m-o-m in its bulk ferrous scrap imports in Aug’21, as per vessel line-up data compiled by SteelMint. The country, which is a major bulk ferrous scrap buyer from South Asia, imported 0.19 mn t of scrap in August as against 0.22 mn t in July, according to data maintained with SteelMint.
The US continued to be the largest scrap exporter at 0.07 mn t in August followed by the UK and Australia at 0.04 mn t and 0.03 mn t, respectively.
The total volume of imports into Bangladesh fell owing to weaker steel demand amid increased Covid cases which led to lockdown restrictions. The government announced the shutdown of steel mills, bringing manufacturing activities to a halt. The government announced a lockdown from 23 Jul’21 to 10 Aug’21.
Market highlights
Bangladesh’s scrap import market was quiet due to old scrap inventory been stocked with mills and so buyers opted to use existing material for continuing their construction projects amid heavy rains owing to less demand for finished steel in the market.
Due to disparities in bids and offers impacting Bangladesh’s bulk scrap purchases from Japan, market players kept preferring other origins like the US, New Zealand, and Australia to fulfill their requirements as offers were in accordance with the buyers’ demand.
Outlook
Imported bulk scrap buyers are likely to turn active in the forthcoming months as construction work recommenced after the lockdown lifted a few days back.
It is anticipated that steel demand will pick up from next month by when sentiments are expected to improve, SteelMint learnt.
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