Imported scrap offers to Bangladesh maintained upward movement owing to which less activities witnessed this week. However, local ship breaking scrap prices remained stable in Bangladesh.
As per recent conversations with market participants SteelMint learned that, imported scrap offers to Bangladesh rose further this week. Offers for HMS 1&2(80:20) are currently floating at USD 370/MT, CFR which have increased by USD 10-15/MT on W-o-W basis. Last week HMS 1&2 from Australia assessed at USD 357/MT level.
Current assessment for US and UK origin Shredded 211 in containers is around USD 390-395/MT, CFR for Feb ’18 shipment. While offers for UK origin Shredded scrap in bulk cargo heard higher by USD 10-15/MT than present offer levels.
Prices for ship breaking remained unchanged on W-o-W basis in Bangladesh. Despite which, the market witnessed no sale again in this week in Bangladesh. The prices assessed for shipbreaking were at USD 420/LDT for general dry bulk cargo and USD 430/LDT & USD 440/LDT for tanker cargo and containers respectively on CNF Bangladesh basis.
Bangladesh steel mills have turned less active amid sharply rising prices and less offers amid market closure over upcoming New Year holidays. Most of the buyers are working with inventories available to them or preferring cheaper local ship breaking scrap against imported. While buying interest stood limited and at USD 15-20/MT level lower than the present offers in Bangladesh.
Construction activities in most of the regions of Bangladesh are looking on hold due to heavy winters while continuously rising scrap prices amid insignificant price gains in domestic finish markets have resulted in buyers to wait for now in Bangladesh. Sharply increased freight rates for scrap imports from Australia and Canada origin and extended delivery periods for USA, UK and African origins have slowed down imported scrap buying in Bangladesh since last few weeks. – shared a source.
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