Bangladesh: Bulk ferrous scrap imports rise 11% y-o-y in H1CY25

• Imports from Japan surge; US, Australian volumes fall
  
  
• H1 bulk prices drop 10-12% y-o-y across major origins
  
  

In H1CY'25, Bangladesh's bulk ferrous scrap imports rose 11% to 1.63 million tonnes (mnt) from 1.47 mnt in H1CY'24.

May 2025 recorded the highest monthly bulk scrap imports at 0.39 mnt, while February saw the lowest at 0.18 mnt. In June, imports fell 17% m-o-m to 0.323 mnt from May.

Total ferrous scrap imports, including both bulk and containerised shipments, reached 2.44 mnt, marking a 5% increase compared to 2.33 mnt during the same period last year.

H1 average prices decline

• In H1CY'25, US-origin bulk HMS (80:20) prices declined 10% to an average of $370/t CFR Chattogram from $412/t CFR in H1CY'24.
  
  
• In H1CY'25, Japanese-origin bulk H2 prices averaged $358/t CFR Chattogram, a 12% decrease compared to $408/t CFR in H1CY'24.
  
  

Country-wise breakup

Japan became a much stronger source for Bangladesh's bulk scrap imports in the first half of 2025, while volumes from the US and Australia declined y-o-y.

Japan: Imports from Japan totalled 0.57 mnt in H1CY'25, almost quadrupling from 0.15 mnt in H1CY'24. The highest monthly volume was recorded in May at 0.14 mnt, while January and February recorded the lowest, each at 0.07 mnt.

Singapore: Bangladesh received 0.14 mnt in H1CY'25 versus 0.09 mnt in H1CY'24, a moderate increase.

US: Bangladesh imported 0.56 mnt of bulk ferrous scrap from the US in H1CY'25, down 21% from 0.71 mnt in H1CY'24. Among monthly volumes, March saw the highest at 0.15 mnt, while May recorded the lowest, at 0.10 mnt.

Australia: Bangladesh imported 0.18 mnt from Australia in H1CY'25, a drop of 36% compared to 0.28 mnt in H1CY'24. The highest monthly volume was received in February at 0.08 mnt, while January and May saw lower volumes at 0.02-0.03 mnt.

Major developments

Ship breaking: Bangladesh's ship-breaking industry faced a tough first half this year, with total volumes declining by 11% to 489,324 tonnes (t), compared to 551,060 t in H1CY'24.

The sector continued to grapple with delays in achieving compliance with the Hong Kong Convention (HKC) and securing no-objection certificates (NOCs), which restricted operational capacity. As a result, many ship-owners redirected vessels to India and Pakistan, seeking faster clearances and smoother transactions. Meanwhile, subdued domestic demand and cautious buying further weighed on sentiment throughout H1CY'25.

BDT depreciates: The Bangladeshi taka averaged BDT 121.8/USD in H1CY'25, weakening by around 8% from BDT 113.2/USD in H1CY'24.

So far in 2025, the currency has remained relatively stable, fluctuating between BDT 121.5-122.7/USD, notably higher than the previous years range of BDT 109.5-117/USD.

Outlook

Despite increased import volumes, Bangladeshs ferrous scrap and ship recycling sectors continue to face headwinds from currency depreciation, weak steel prices, and regulatory constraints. A shift in sourcing patterns is also emerging, with US-origin scrap imports likely to remain under pressure amid stronger demand at home. Going into H2CY'25, market attention will focus on signs of demand recovery, progress in HKC compliance, and global steel market direction.