Scrap vessel imports drop to a 4 year low in 2022

In June, the opening and settlement of import letters of credit (LC) in Bangladesh decreased due to the Eid holidays, with banks opening LCs worth $5.17 billion, down from $6.83 billion in May. Despite this, June saw a 6% increase in LC openings year-on-year. For FY24, total import LCs opened amounted to $68.19 billion, a 1.85% increase from FY23.

Bangladesh's textile and spinning mills are grappling with a severe gas crisis, significantly hampering local yarn production. Yarn imports surged by 13% to $2.64 billion in the last fiscal year as domestic mills struggled to meet demand.

Bangladesh Bank has extended the usance period for imports of industrial raw materials, agricultural machinery, and chemical fertilizers by another six months. This extension means the grace period for making payments for goods imported through letters of credit (LC) will now end on December 31, rather than today

In May, Bangladesh witnessed a significant rise in Letter of Credit (LC) openings, reaching the highest level in 23 months at $6.83 billion. This surge was bolstered by increased inflows of remittances and export proceeds, which enhanced dollar liquidity in commercial banks. Compared to April, LC openings rose by over 20%, supported by a notable remittance influx of $2.25 billion, higher than the fiscal year's average.

Due to high production costs, domestic textile millers, especially spinners, face stiff competition from foreign competitors, leading to loss of orders, even domestically. Garment exporters prefer importing raw materials, particularly yarn, hindering the growth of the local spinning sector.

The Dhaka Chamber of Commerce and Industry (DCCI) has urged the United Kingdom (UK) to expand its imports from Bangladesh beyond the current focus on ready-made garments (RMG) products. The DCCI president highlighted that over 94% of Bangladesh's exports to the UK, amounting to USD 5.03 billion, are concentrated in RMG products. He emphasized the need to diversify exports to the UK, as other