According to Kallanish, imported scrap prices in Bangladesh have risen by $2-3 per tonne following the Eid holiday, despite sluggish demand. This increase is attributed to a surge in freight rates for July shipments.
The cost of shipping a 20-foot container from Brazil or Australia to Bangladesh has jumped by $500, translating to roughly $20 per tonne of scrap metal. Market participants cite the ongoing Red Sea issue as a key factor, causing ship detours, container shortages, and port congestion.
While scrap demand remains slow due to the monsoon season and reduced construction activity, sellers are passing on the higher freight costs to consumers. This price increase comes despite projections of long-term growth in Bangladesh's steel consumption, fueled by infrastructure development and rising individual consumption. Market reports predict a 25% increase in steel consumption by 2027, reaching an estimated 10.6 million tonnes.
