Bangladesh’s bulk steel scrap imports rose by 39% in CY’20 as compared to CY’19. Bulk import volumes stood at 2.32 mn t in CY’20, as per data compiled with SteelMint. USA remained the largest supplier at 1.22 mn t (up 37% y-o-y) followed by Japan and Australia at 0.8 and 0.16 mn t respectively.
After Government imposed import duty, billet imports to Bangladesh became non-viable since last five years. Steel melting capacity have been increasing with Bangladeshi mills becoming self-sufficient in billet production and an increase in scrap imports. The expansion projects taken up by BSRM, GPH Ispat, KSRM, Metrocem etc. have also boosted bulk scrap imports.
GPH Ispat’s new quantum EAF furnace had successfully performed its test runs on 15th Jan’20. The plant includes an 80 t Quantum EAF Furnace with pre–heating system that provides a staggering 36 heats per day for steelmaking. It’s tap-to-tap time is just 40 minutes.
Bangladesh, an emerging steel market and one of the growing importers of ferrous scrap in Asia, witnessed a marginal increase in bulk scrap imports by 3% m-o-m to 0.30 mn t in Dec’20, witnessing a fourth successive hike on a monthly basis, as per vessel line up data maintained with SteelMint.
Out of the total 12 bulk vessels that arrived in Dec’20, Japan remained the largest source for Bangladesh scrap imports and exported six vessels with 0.10 mn t. USA persisted at second spot and exported five vessels with 0.16 mn t of scrap, followed by Netherland at 0.03mn t. USA, Japan and Netherland remained key bulk scrap suppliers to Bangladesh in Dec’20.
Bangladesh’s steel sector had a steel production capacity of 7 mn t in CY’19. After the ramp-up, the steel production capacity has reached around 8.5 mn t in CY’20.
Outlook – BSRM’s board had approved investment of BDT 700 crore to raise the capacity by another 0.5 mn t pa. The new plant is expected to start its operations by mid 2023. The ramp up of steel output at other key mills is likely to raise ferrous scrap imports further in the coming years.
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