Imported scrap offers to Bangladesh market remain unchanged this week . However, trading activities remained low owing to Ramdan festival.
Current offers for HMS 1&2 from Australia and US are assessed at USD 280-285/MT CFR Chittagong (in containers). Where as shredded scrap offers from Europe/UK assessed at USD 315-320/MT CFR Chittagong in containers.
Brazilian P&S offers are assessed at USD 310-315/MT CFR Chittagong. Some bulk deals have been reported this week. Price indication was around USD 290-300/MT CFR Chittagong.
Market participants report that over all import volumes to Bangladesh has reduced this week owing to following reason
1. Ongoing Ramadan festival
2. Bangladesh federal budget , which was announced on 1st June . Some changes on tax structure and import duty has been made for scrap , pig iron and sponge iron
3. Slow off-take in finished demand
According to customs data , Bangladesh scrap imports were recorded at around 2.2 MnT in 2016. Out of which 25-30% is through bulk imports and rest through containers.
Government proposes 5% Regulatory Duty on scrap imports
Bangladesh government in its federal budget proposes to impose 5 % Regulatory Duty instead of flat 1,500 (USD 18/MT) Bangladeshi Taka. This will not impact the cost of imports , considering average imported scrap price at USD 300/MT.
Government has also proposed to impose 15% VAT on imports of scrap, for which manufactures will be eligible to get the input credit at the time of value addition.
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