- Five bulk deals signal demand pickup after a cautious start to Jan’26
- Bangladesh’s return to the Kanto tender reinforces buyer confidence
- Scrap imports rise 3% y-o-y in 2025 as bulk share climbs to 74%
Bulk ferrous scrap bookings into Chattogram improved notably over the past two weeks, before the February 2026 elections, with five bulk deals concluded in the last 15 days, signalling a gradual revival in buying interest from Bangladeshi mills after a subdued start to the year. Of the total deals, three cargoes were booked from Japan and two from Singapore. Most were mid-sized vessels carrying 10,000-25,000 t each.
It is noteworthy that Bangladesh’s total ferrous scrap imports rose by around 4% in 2025 to 5.35 million tonnes (mnt), compared with 5.15 mnt in 2024. Bulk cargoes continued to dominate the import basket, accounting for approximately 3.98 mnt (74%) of total arrivals during the year.
Within bulk supplies, Japan emerged as the largest supplier in 2025 at around 1.5 mnt, followed by the US at 1.35 mnt, Singapore at 0.38 mnt, and Australia at 0.3 mnt. This marked a notable shift in supplier mix compared with 2024, when the US led bulk scrap exports to Bangladesh with 1.72 mnt, followed by Japan at 0.56 mnt, Australia at 0.4 mnt, and Singapore at 0.28 mnt.
Mills were seen selectively stepping back into the bulk market, locking in cargoes when grade mix and shipment timelines aligned with margin requirements, while maintaining caution amid still-sensitive steel realisations.
Market sentiment was further supported by Bangladesh’s return to the January Kanto export tender after a two-month gap.
Highlights of deals
- In the second week of January (9 January) in Kanto scrap export tender, a Chattogram-based mill secured a 20,000-t H2 cargo at JPY 46,771/t FAS, translating to around $305/t FOB Japan and approximately $345-350/t CFR, after Vietnam absorbed the November and December tender volumes.
- This week, two Singapore-origin bulk cargoes of HMS 80:20, each of 10,000 t, were traded at $358/t and $362/t CFR Chattogram.
- In another deal this week, a larger 25,000-t mixed bulk cargo from Japan, covering H1/H2, busheling, and shredded scrap, was concluded at an average of $370/t CFR. Grade-wise, H1/H2 was priced at $350-355/t, while HS and busheling commanded higher levels at $380-385/t CFR Chattogram.
- Japan-origin scrap continued to see active interest. Last week, a 20,000-t bulk cargo was sold, comprising 10,000 t of H2 at $345/t CFR and 10,000 t of HS at $375/t CFR Chattogram.
Outlook
Bulk scrap imports in Bangladesh are expected to remain largely stable but supported in the near term, with grade spreads staying wide. With national elections scheduled for 12 February, market sentiment remains cautiously optimistic.
Industry participants expect larger mills, particularly bulk scrap consumers, to step up procurement post-elections, as improved liquidity and expectations of continuity in infrastructure and construction activity under a stable governance framework could support higher cargo bookings.
Leave a Reply