Bangladesh: Bulk ferrous scrap imports rise nearly 45% m-o-m in Oct’22

Bangladesh, a major bulk ferrous scrap importer, bought a sizeable volume of bulk scrap in October 2022. Imports increased by 44% m-o-m to 581,094 t tonnes (t) in October against 402,798 t in September, as per SteelMint data.

Bulk import volumes rose 153% y-o-y against 229,646 t in the corresponding period of last year. Imports from the US, the Netherlands, and Japan remained high; however, bulk import volumes from the UK and Venezuela were almost absent.

A total of 3.37 mnt has been imported by the country during January-October this year, an increase of 64% compared to January-October last year. Bangladesh registered the highest import volumes since 2017, as per SteelMint data.

Country-wise breakup-

• Imports from US surge:  The US, the largest bulk scrap supplier to Bangladesh, remained the top exporter in October at 317,680 t as against 131,859 t in September, up 141 % m-o-m. Prices quoted by US suppliers were comparatively lower than other origins, which pushed bulk export volumes higher.
• Imports from Netherlands up: Suppliers from the Netherlands with viable scrap prices attracted Bangladeshi buyers to procure material. Import volumes rose 164% at 103,676 t in October compared to the previous month.
• Imports from Japan increase: Japanese suppliers showed more interest in exporting to Bangladesh, as volumes increased by 35% m-o-m to 78,064 t.
• Zero bulk imports from UK, Venezuela, and Belgium: In October, no imports were recorded from suppliers in the UK, Belgium, and Venezuela, whereas imports from New Zealand resumed.

Price trend

• SteelMint’s monthly average price assessment for US-origin bulk HMS (80:20) stood at $416/t CFR Chittagong in September as against $444/t CFR in August.
• SteelMint’s monthly average price assessment for Japan-origin bulk H2 stood at $446/t CFR Chittagong in September as against $428/t CFR in August. The significant hike in prices lowered buying interest.

Outlook

Bulk imports are unlikely to fall from current levels due to restocking for the winter season. However, bulk scrap prices from Japan might trend lower in the near term, which should support buying interest. With the Bangladeshi currency remaining volatile and problems in LC opening, buying interest still remains stunted.