Imported billet offers to Bangladesh continue to move up owing to rising steel prices in Chinese market. Current offers for Chinese 150*150 mm billet are assessed at around USD 285/MT, CFR Chittagong. Whereas, Russian billet offers are assessed at around USD 290-295/MT, CFR Chittagong.
Indian suppliers remained absent from export market, as domestic prices rise after government imposed Minimum Import Price (MIP) on several steel products.
However, Indian exporters enjoy a differential duty under SAFTA (South Asian Free Trade Area) agreement. For a re-roller based in Bangladesh, importing billet from non-SAARC nations will attract a flat duty of USD 90/MT. Whereas, imports from SAARC nations (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives) attract negligible import duty on billets.
Bangladesh imports about 1.5-2 MnT of billet annually, out of which, majority is imported from China and India.
Billet imports will fall eventually in coming years as more induction and electric arc furnaces have commissioned.
Bangladesh is an emerging developing country and has been growing at over 6% on average for the last one decade. The nation’s per capita steel consumption is well below the world average of 217 kg. Bangladesh’s current per capita finished steel consumption stands at 26 kg, which was 57 kg for India in 2012.
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