Bulk Ferrous Scrap Bookings Hit New Peak in Bangladesh

SEATTLE (Scrap Monster): The official government data suggests significant upsurge in bulk ferrous scrap bookings by Bangladesh during the month of March this year.

The bulk scrap bookings in March 2020 hit a record high. The mills collectively booked around 360,000 metric tonnes of scrap via bulk route through sixteen bulk vessels during the month, said government data. This is the highest volume booked by Bangladesh by cargo. Most of these bookings are scheduled for end-April or early-May delivery. The bookings have almost trebled when considering the fact that the country’s average monthly booking used to be around 1,30,000 metric tons to 1,40,000 metric tons.

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Out of the 16, eight vessels were from the U.S. West Coast, averaging at around 30,000-32,000 metric tons each. Six smaller vessels from Japan accounted for a total of approximately 60,000 metric tons. Two vessels were booked from Australia with 27,000 metric tons each.

Tight availability of containers due to pandemic, on account of containers being stuck at ports and at transhipment stage, is being cited as the primary reason for the sharp increase in bulk cargoes. This has led to hike in container freight rates, which in turn has made bulk imports more viable.

Bangladesh is considered as one of the fastest emerging ferrous scrap importer in the Asian region. The country had imported 3.7 million metric tons of ferrous scrap in 2019.