Bangladesh: Bulk scrap imports fall sharply by over 50% m-o-m in Feb’23

Bangladesh, a major bulk ferrous scrap importer, recorded 89,075 tonnes (t) of bulk scrap imports in February 2023, down sharply from 185,744 t in January, a decrease of 52% m-o-m, as per vessel data maintained with SteelMint.

Bulk scrap imports by the country fell 53% y-o-y from 229,175 t in February 2022. Bulk scrap imports dropped significantly due to restrictions by banks on opening LCs which propelled the import costs of scrap and buyers remained inactive amid liquidity constraints.

Bangladeshi buyers booked material from the US, Australia, and Japan. The country recorded total scrap imports, including bulk and containerised, at around 146,000 t in February.

Country-wise imports

• Imports from US decline: The US, a top bulk scrap supplier to Bangladesh, witnessed a drop in its export volumes to 35,200 t in February as against 101,767 t in January, down significantly by 65% m-o-m. Imports from the US were also sharply down by 42% from 60,581 t in February 2022, after reaching 100,000 t in the previous month.
• Imports from Australia drop: Imports from Australia stood at 31,875 t in February, down 16% m-o-m. Imports from the UK remained absent in February, whereas a small quantity was heard imported from Japan after a month’s gap.

Price trends

SteelMint’s monthly average price assessment for US-origin bulk HMS (80:20) stood at $450/t CFR Chittagong in January as against $426/t CFR in December.

SteelMint’s monthly average price assessment for Japan-origin bulk H2 stood at $441/t CFR Chittagong in January as against $418/t CFR in December.

Outlook
The LC situation is easing and it is expected to get better in the short term. Dhaka-based medium-sized mills, too, have started imports of containerised scrap, and bulk scrap volumes might rise from here on.