Looking at the budding steel making capacities in the country, Bangladesh is likely to be counted among top 5 ferrous scrap importing countries in Asia.
Asia plays an important role in global sea borne scrap trade, contributing 30% of scrap imports, where world‘s total sea borne scrap trade is figured out to be around 95-100 million tonnes annually.
According to industry data, in 2014, Asia’s majority of the seaborne scrap trade was dominated by Korea with scrap imports at around 8 million tonnes; followed by India (5.7 million tonnes),Taiwan ( 4.3 million tonne), Vietnam (2.7 million tonnes) and China (2.5 million tonnes).
Now here, Bangladesh has high potential to replace Vietnam and China in coming years, provided steel makers operate at optimum capacities after the planned expansion program.
In FY15, Bangladesh imported around 0.6 million tonnes of scrap for steel making, which is expected to increase to 2.5-3 million tonnes in FY16.
Rising Steel Making Capacities in Bangladesh
Steel making capacity in Bangladesh is growing at rapid rate. According to a study, steel making capacity in Bangladesh will increase to over 3 million tonne from 0.8 million tonne by the end of 2015.
Abul Khair Group and Bangladesh Steel Re-Rolling Mills Ltd (BSRM) are all set to expand their crude steel making capacity to 1.6 million tonnes and 1.1 million tonnes respectively, by the end of 2015.
There are other re-rollers in Bangladesh who are also wiling to set up steel making facilities in order to avoid their dependence on imported billets or ship breaking plates.