SteelMint Events

Tag: 3rd Steel and Raw Material Conference

  • SteelMint analysis: Bangladesh likely to improve scrap imports to raise steel melting capacity by 2025

    SteelMint analysis: Bangladesh likely to improve scrap imports to raise steel melting capacity by 2025

    • Bangladesh set to increase steel melting capacity around 13 mnt by 2025
    • BSRM, AKS, GPH and many other mills are setting up additional capacity
    • Bashundhara, Meghan & Akij entering steel business

    Bangladesh, one of the largest ferrous scrap importers in South Asia, is likely to witness an increase in steel melting capacities from 9 million tonnes (mnt) per annum currently to around 13 mnt by 2025 due to the growing demand for steel, cement, power and upcoming infra projects.

    Renowned steel producers in Bangladesh like BSRM, AKS, GPH, and many other mills are setting up additional capacity and facilities to cater to government-funded infrastructure projects in the coming years.

    Bashundhara Group is expanding its capacity to 1.2 mnt (EAF) in the 1st phase and 2.2 mnt (DRI) in the 2nd phase; Meghna by 1 mnt (EAF); AKS and Unitex by 800,000 t; BSRM by 500,000 t; and Akij by 300,000 t.

    Why is Bangladesh an emerging economy?

    • GDP growth rate: The economy of Bangladesh has a projected GDP growth rate of 6.4% for FY’23 as an emerging and fastest growing economy after India in South Asia.
    • Increasing steel demand for govt-funded projects: Steel demand in Bangladesh may remained supported mainly due to the government-funded infrastructure projects which were launched to stimulate the economy hit by COVID-19. Projects such as the Ashrayan Project, Metro Rail, Karnafuli Tunnel and elevated expressway from Dhaka Airport to Kutubkhali are expected to boost infrastructure construction. Hence, scrap demand is also likely to remain supported this year as well as in 2023.
    • Development of port facilities: Due to inadequate port facilities in the country, large ships were unable to enter Chittagong port. However, the Bangladeshi government has started working on projects such as the Matarbari Deep Seaport, which is estimated to be completed by 2026. Once these projected ports are completed, steel manufacturers will be able to import scrap more easily, which will ultimately speed up their production.

    Expert opinion

    “Over the past five years, Bangladesh has become an integral part of the ferrous scrap trade in the South Asian region. As new steel capacities come onstream, scrap suppliers are looking forward to continuing the close relationship with the country in the years ahead,” stated Zain Nathani, Director, Nathani Group of Companies, India.

    Sanjoy Ghosh, Head of Supply Chain, BSRM, said: “Steel industries in Bangladesh are entering into a new phase amid higher demand forecast in line with projected economic growth. Despite the current global economic turmoil, all major plants are into enhancing their capacity and also new plants are trying to create a footprint in the market in order to cater to future demand. So, it is challenging time ahead for entire steel industry.”

    Scrap import scenario

    Bangladesh is a country which is entirely dependent on scrap for steelmaking. The volume of imported ferrous scrap (both bulk and container) into Bangladesh stood at 2.83 million tonnes (mnt), up 53% in the first half (H1) of 2022 as against 1.85 mnt seen in the same period in 2021.

     

    Bangladesh: Total ferrous scarp imports

    As Bangladesh is eying over 6% GDP growth in the current year, the South Asian nation is making a concerted effort to spearhead infrastructure spending, which is expected to increase steel consumption going forward. However, it will be interesting to see if demand remains supportive against the backdrop of rising steel capacity.

    Join our event to know more on whether Bangladesh’ scrap imports will touch 6 mnt by 2025.

    SteelMint Events will be hosting the 3rd Steel & Raw Material Conference, Emerging Bangladesh on 20-21 September, 2022 at Hotel Radisson Blu, Chittagong, Bangladesh. The conference will explore key issues like the country’s steel production and demand outlook, global scrap trade flow changes, especially post-the Russia-Ukraine war, the ship recycling scenario, key emerging sectors, price trends and a lot more.

  • Bulk Ferrous Scrap Imports to Bangladesh Surge 39% in Jan-Oct 2019

    Bulk Ferrous Scrap Imports to Bangladesh Surge 39% in Jan-Oct 2019

    Bangladesh, an emerging steel market and one of the growing importers of ferrous scrap in Asia, has witnessed a sharp increase in bulk ferrous scrap imports in 2019.

    During the period of Jan-Oct’19, bulk scrap imports to Bangladesh have been recorded at 1.25 MnT, witnessing a significant increase by 39% Y-o-Y as compared to 0.90 MnT during the same period Jan-Oct’18.

    Rising melting capacities and expansion plans of major steelmakers in the country has led to an increased ferrous scrap demand, while even more steelmakers are now turning active in booking scrap through bulk cargo vessels, as compared to only two major steelmakers booking bulk scrap till last year.

    46 bulk scrap vessels arrived at berth – So far in 2019, a total of 46 bulk vessels of ferrous scrap arrived on berth in Bangladesh’s sea port, which is again a sharp increase against 31 bulk vessels last year (Jan-Oct’18).

    USA remained the largest bulk scrap supplier – In terms of preferred origins for bulk scrap to Bangladesh, USA has remained the largest supplier in 2019 as well with 0.55 MnT as yet, however its share in total bulk scrap imported to Bangladesh has come down to 44% in 2019 (Jan-Oct) from 68% during Jan-Oct’18. However share of origins like UK, Japan and Australia considerably increasing their share this year.

    Increased preference for UK & Japanese scrap cargoes – In particular, bulk scrap imports share from UK has increased from 13% in Jan-Oct’18 to 23% in Jan-Oct’19. Interestingly, out of the 47 bulk vessels with scrap that have come to berth at Chittagong port this year, Japan has a contribution of 13 bulk vessels with nearly 0.2 MnT, recording a two-fold jump against same time span last year.

    In Oct 2019, bulk scrap imports to the country witnessed an increase by 19% M-o-M.

    After govt imposed import duty made billet imports to Bangladesh non viable since 2015, scrap imports gradually went on to completely replace billet imports to Bangladesh by 2018. Further, the share of bulk vessels in the total scrap imports to the country has also been observing an increase since then.

    To know more on Bangladesh scrap imports, book your seat at SteelMint’s 3rd Steel and Raw Material Conference, Bangladesh and get a chance to hear views of renowned industry participants from across the globe. The conference is being organized on 23rd-24th March 2019 in Chittagong, Bangladesh.

    Explore