Bangladesh based importers are hopeful of improvement in demand post government changed duty structure on imported billets. It may be noted that government has introduced a regulatory duty of 20% on billets from all the origins.
Large players like Abul Khair, BSRM, KSRM are reported to have already commissioned high-capacity induction and electric arc furnaces which would expand crude steel production significantly.
Scrap will be a major raw material for steel smelting units based in Bangladesh – with expected imports to rise from 0.5 million tonnes this year to 2.5 million tonnes in 2016,’ SteelMint Events points out.
As a result, Bangladesh is believed to have the potential to become the second largest scrap importer in East Asia, after India, and the fourth largest importer in Asia as a whole.
Current offers for shredded from Australia are assessed at USD 245/MT CFR Chittagong and HMS 1&2 at USD 225-230/MT CFR Chittagong.
Global Imported ferrous scrap in week 23
| Particular | Size | Prices | 1W | 1M | Remark |
| CNF India | HMS(80:20), Europe | 215 | 218 | 217 | Buying interest remains extremely weak. Total scrap imports to India fall by 14% in May 2016 |
| HMS-1, Middle East | 215 | 217 | 220 | ||
| HMS-1&2, S.Africa | 210 | 213 | 220 | ||
| Shredded, Europe | 225-230 | 235 | 245 | ||
| Shredded, US | 220-225 | 233 | 247 | ||
| CNF Taiwan | HMS(80:20), US | 185 | 190 | 198 | – |
| CNF Turkey | HMS(80:20), US | 255 | 263 | 280 | Scrap prices likely to fall on competitive Billet offers from China and CIS regions |
| CNF Bangladesh | Shredded, Australia | 245 | NA | NA | Scrap imports likely to improve post union budget, which introduces 20% duty on imported billets |
| HMS 80:20, Australia/Europe | 225-230 | NA | NA | ||
| CNF Pakistan | Shredded, US/Europe | 230-235 | 230-235 | NA | Buying in Pakistan remained dull, however mills remain out of stock |
Offers in USD/MT
Source: SteelMint Research
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