Bangladesh, a key importer of bulk scrap in South Asia, experienced a remarkable upswing in its bulk ferrous scrap imports in March 2024. The country brought in a total of 313,124 tonnes (t), significantly higher than the previous month’s 174,428 t. This surge also reflects a striking 79% increase compared to March 2023’s import volume of 174,863 t.
In the period spanning January to March, the total import volume amounted to 696,070 t, reflecting a significant 55% increase from the 449,682 t recorded during the corresponding period last year.
The surge in imports can be attributed to several factors: pent-up demand stemming from national elections held in January, enhanced foreign exchange reserves, and an improvement in letter of credit (LC) approvals from banks. Additionally, there was an uptick in construction and infrastructure activities following the elections.
Country-wise break-up:
Imports from the US: March saw a significant increase in bulk scrap imports from the US, more than doubling to 156,910 t from February’s 61,958 t. Compared to the same period last year, imports surged by 61% from 118,547 t. Cumulative imports for January to March reached 281,337 t, marking a 20% increase from 234,540 t in the corresponding period last year. The surge can be attributed to improved LC and foreign reserves post-election, coupled with softened offers from the US. For instance, in March, the average monthly offers for bulk HMS (80:20) from the US stood at $404/t CFR Chattogram, down approximately $28/t from the previous month’s $432/t CFR.
Imports from Australia nearly doubled: Bangladeshi importers procured approximately 48,685 t of ferrous scrap from Australia in March, reflecting a notable surge of 82% compared to the 26,804 tonnes imported in February. Interestingly, there were no imports recorded in March 2023.
For the January-March period, cumulative scrap imports reached 136,039 t, showcasing a substantial increase of 95% compared to the 69,852 t reported during the same period last year.
Imports from New Zealand down by 10%: In March, scrap imports from New Zealand totaled 21,993 t, showing a 10% decline from the 24,429 t recorded in the previous month. Similarly, on an annual basis, imports dropped by 22% compared to the 28,332 t reported in March 2023.
For the January-March period, import volumes amounted to 69,167 t, representing a remarkable increase of over 144% compared to the mere 28,332 t imported during the corresponding period last year.
Price trends
BigMint’s monthly average price assessment for US-origin bulk HMS (80:20) stood at $404/t CFR Chattogram in March as against $432/t CFR in February.
BigMint’s monthly average price assessment for Japan-origin bulk H2 stood at $400/t CFR Chattogram in March, as against $428/t CFR in February.
