Bangladesh has potential to become Asia’s 5th largest ferrous scrap importing nation, looking at rising steel making capacities. Seaborne scrap trade in Asia is dominated by Korea (8.0 MnT) followed by India (5.7 MnT), Taiwan (4.3 MnT) Vietnam (2.7 MnT) and China (2.5 MnT).
The nation also has the potential to replace Vietnam/China in near-term, provided steelmakers operate at their optimum capacities. In FY15, Bangladesh imported about 0.6 MnT of scrap, which is expected to increase to 2.5-3 MnT in FY16.
Steelmaking capacities rising in Bangladesh
Steelmaking capacities are rising rapidly in Bangladesh. According to a study, it was assessed that steel making capacity will grow from 0.8 MnT to over 3 MnT by 2015 end.
Abul Khair Group, Bangladesh Steel Re-Rolling Mills (BSRM), is expanding its crude steelmaking capacity to 1.6 MnT and 1.1 MnT by 2015 end.
There are other steelmakers in Bangladesh, who are wiling to set up facilities in order to avoid their dependence on imported billet or ship breaking plates.
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