Bangladesh: Bulk Ferrous Scrap Imports Surge in Mar'19

steel coil and HBI during Mar’19 on monthly premises. On the other hand, coal imports observed fall after hitting a record high in Feb’19. The country has observed a single mill scale export shipment in Mar’19.

Bulk ferrous scrap imports jump five folds - The country imported 146,000 MT of bulk scrap in Mar’19. Scrap imports multiplied almost five folds or by 394% M-o-M against 29,550 MT bulk scrap imports recorded in Feb’19. Bulk scrap imports in Feb’19 moved down on high inventories which could have supported importers to return into the market for March delivery shipment.

Total five bulk scrap cargoes arrived at berth in Mar’19 out of which respectively two were from USA and Japan and another was from the UK. Currently, a vessel named ‘La Bamba’ is at the expected position carrying around 31,890 MT bulk scrap from the USA.

Bangladesh steel mills are mostly dependent on ferrous scrap imports for steelmaking and they prefer good quality (Shredded and HMS 1) ferrous scrap in bulk volumes by paying quite high in subcontinent markets on quality concerns. Over the first quarter of CY19, demand for finish steel remained decent in Bangladesh resulting in high bulk scrap imports despite Chittagong remains the most preferred destination for large LDT ships beaching for breaking activities on cheaper availability of labor.

Bulk coal imports fall 11% M-o-M - Bangladesh coal imports dropped 11% M-o-M to 899,405 MT in Mar’19 from its highest-ever recorded volume of 1,008,808 MT in Feb’19, but it was still 192% higher on the year from 308,118 MT in Mar’18.

Bangladesh’s appetite for imported coal slowed down over the month of Mar’19, after buyers had recorded highest-ever shipment in the previous month.

Indonesia remained the largest supplier of bulk coal to Bangladesh. However, Indonesian coal export volume recorded at 729,520 MT in Mar’19, down 19% as against 902,680 MT in Feb’19. Followed by South Africa supplying 169,885 MT coal in Mar’19.

Bangladesh's coal import have been on higher side during 2018-19 on account of lower domestic coal supplies inflicted by the temporary closure of coal sales from Barapukuria Coal Mining Company.

The country has already surpassed its previous year’s imports and has attained 4,384,727 MT of coal in total during the first 9 months of Bangladeshi fiscal year FY19 (Jul’18-Mar’19).

Two bulk HBI import vessels arrived at berth - Bangladesh imported two bulk shipments of HBI from Ukraine in Mar’19. The vessel name Sam Hawk carrying 55,500 MT & another vessel - Tai Summit carrying 58,200 MT HBI from the Yuzhny port based in Ukraine arrived at Bangladesh port.

No bulk billet import shipments were seen for last 8 months while bulk Pig Iron imports recorded at 30,000 MT in Mar’19 against nil volumes in Feb’19. A vessel carrying 33,000 MT Pig iron is currently at expected position for April delivery.

The country imported 78,548 MT bulk steel coil in Mar’19, up 76% M-o-M against 44,740 MT in Feb’19.

After recording nil volume for successively three months, a single export shipment for mill scale comprising 35,000 MT has been witnessed from Bangladesh’s port in Mar’19.