Buying interest for imported scrap has improved this week against the last couple of weeks, however, scrap import activities continued to remain on the lower side amid ongoing Ramadan holidays and rains in the country.
As per recent conversations with market participants SteelMint learned that, few trades for imported scrap have concluded in the market as the offers from suppliers got slightly corrected this week. However, earlier in the last couple of weeks, Bangladesh witnessed a sharp decline in the buying interest for imported scrap. Import activities remain limited on the effect of ongoing Ramadan holidays, starting of rains since last couple of days and easier availability of domestic scrap in the country. However, market participants are hopeful of improved trades in coming days.
In recent trades heard minor volumes for HMS 1 sold at around USD 380-383/MT from Brazil while total around 4000 MT of containerized HMS 1&2 scrap sold in the range of USD 363-368/MT, CFR Chittagong from West Africa and Europe respectively. HMS 1 from Dubai and South Africa assessed at USD 382-387/MT, CFR. These deals have pulled the price assessment for HMS down by USD 5-7/MT on W-o-W basis.
On the other hand, price assessment for Shredded scrap from UK/Europe stood mostly stable at USD 400/MT, CFR Chittagong. Few offers for P&S scrap also heard in the range of USD 395-405/MT, CFR from Brazil and Australia.
Domestic scrap prices move up further by USD 9-12/MT – The local scrap prices are reported at around BDT 37,300-37,800/MT (USD 442-448), ex-works including 15% local taxes. These prices have moved up amid improved demand by BDT 800-1000/MT (USD 9-12) as against last report of BDT 36,500-37,000/MT (USD 433-439) last week.
Domestic ship cutting plate scrap (considered to be equivalent to P&S) offered in the range of BDT 41,500-42,500/MT (USD 492-504) (Size 16 mm and 20mm) While ship cutting plates larger than 20mm size assessed at BDT 42,000-43,000/MT(USD 499-511).
Demand for finish steel remains low in the domestic market – The construction activities in Bangladesh remained slow due to upcoming rains resulting in sluggish domestic demand for rebar which has not yet picked up in the country and likely to remain weak for a couple of weeks’ more.
Offers for rebar for small-scale producers are at around BDT 57,000/MT (USD 681) while for medium scale producers are hovering in the range of BDT 59,000-60,000/MT (USD 705-717) ex-works. Whereas large-scale producers are offering premium rebar almost stable at BDT 63,000-64,500/MT (USD 748-766) ex-works, Chittagong including 15% taxes.
Ship breaking prices witnessed steady sentiments in Bangladesh but remained out of the competition as compared with other Asian markets. Prices assessed at USD 410/LDT for general dry bulk cargo, at USD 420/LDT for tanker cargo and at USD 430/LDT for containers respectively on CNF Bangladesh basis. Participants remained seeking for corrections in the prices in the near future.
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