In Bangladesh, the auto-components market has experienced healthy growth over the last few years. Market Insider says the auto parts market has more than doubled, mostly because of the rise of car users.The auto-components market of Bangladesh has expanded by 10% to reach a level of Tk 1,400 crore in FY 2016-17.
A business-friendly policy over the automotive sector, the increased purchasing power, growing domestic market, and an ever-increasing number of the reconditioned car have made Bangladesh a favourable destination for the automotive market.
Importers mostly import the engine, alternator, radiator, air conditioner, suspension, brake pads, spoiler, rim, tire, trim package, body components, and other spare parts needed to serve this market.
The annual growth of
this auto-components market was at an average of 10% to 12% for the last decade.
The market for automotive components is still unorganized, so any exact data about the industry is not readily available.
Most of the importers fetch reconditioned and new automobile parts from Thailand, China, Indonesia, Taiwan, Dubai, and India. At least 200 traders import auto spare parts, and most of them have workshops. More than 2,500 traders are involved in the components business.
All the most, all kinds of spare parts of various motor cars are available in Bangladesh. Among the spare parts, 80% are for Toyota cars and the rest for other brands.
The world is opening up newer avenues for the transportation industry. At the same time, it makes a shift towards hybrid cars, which deemed more efficient, safe, and reliable modes of transportation.
Over the next decade, this will lead to newer verticals and opportunities for auto-components importers, who would need to adapt to the change via domestic requirement.
Bangladesh auto-components importers are well-positioned to benefit from the globalization of the sector as manufacturing potential.
Something interesting to share?
Join NrgEdge and create your own NrgBuzz today
This winter, natural gas prices have been at their lowest levels in decades. On Monday, February 10, the near-month natural gas futures price at the New York Mercantile Exchange (NYMEX) closed at $1.77 per million British thermal units (MMBtu). This price was the lowest February closing price for the near-month contract since at least 2001, in real terms, and the lowest near-month futures price in any month since March 8, 2016, according to Bloomberg, L.P. and FRED data.
In addition, according to Natural Gas Intelligence data, the daily spot price at the Henry Hub national benchmark was $1.81/MMBtu on February 10, 2020, the lowest price in real terms since March 9, 2016. Henry Hub spot prices have ranged between $1.81/MMBtu and $2.84/MMBtu this winter heating season (since November 1, 2019), generally because relatively warm winter weather has reduced demand for natural gas for heating. Natural gas production growth has outpaced demand growth, reducing the need to withdraw natural gas from underground storage.
Dry natural gas production in January 2020 averaged about 95.0 billion cubic feet per day (Bcf/d), according to IHS Markit data. IHS Markit also estimates that in January 2020 the United States saw the third-highest monthly U.S. natural gas production on record, down slightly from the previous two months.
IHS Markit estimates that U.S. natural gas consumption by residential, commercial, industrial, and electric power sectors averaged 96 Bcf/d for January, which was about 4.4 Bcf/d less than the average for January 2019, largely because of decreases in residential and commercial consumption as a result of warmer temperatures.
However, IHS Markit estimates that overall consumption of natural gas (including feed gas to liquefied natural gas (LNG) export facilities, pipeline fuel losses, and net exports by pipeline to Mexico) averaged about 117.5 Bcf/d in January 2020, an increase of about 0.2 Bcf/d from last year. This overall increase is largely a result of an almost doubling of LNG feed gas to about 8.5 Bcf/d.
Because supply growth has outpaced demand growth, less natural gas has been withdrawn from storage withdrawals this winter. Despite starting the 2019–20 heating season with the third-lowest level of natural gas inventory since 2009, by January 17, 2020, working natural gas inventories reached relatively high levels for mid-winter. The U.S. Energy Information Administration’s (EIA) data on natural gas inventories for the Lower 48 states as of February 7, 2020, reflect a 215 Bcf surplus to the five-year average. In EIA’s latest short-term forecast, more natural gas remains in storage levels than the previous five-year average through the remainder of the winter.
According to the National Oceanic and Atmospheric Administration (NOAA), January 2020 was the fifth-warmest in its 126-year climate record. Heating degree days (HDDs), a temperature-based metric for heating demand, have been relatively low this winter, which is consistent with a warmer winter. During some weeks in late December and early January, the United States saw 25% to 30% fewer HDDs than the 30-year average. This winter, through February 8, residential natural gas customers in the United States have seen 11% fewer HDDs than the 30-year average.
Source: U.S. Energy Information Administration, based on National Oceanic and Atmospheric Administration Climate Prediction Center data
Headline crude prices for the week beginning 10 February 2020 – Brent: US$53/b; WTI: US$49/b
Headlines of the week
Global liquid fuels
Electricity, coal, renewables, and emissions