In recent conversations with market participants SteelMint learned that, scrap importers in Bangladesh have witnessed limited quantity scrap bookings as offers are almost stable on W-o-W basis with marginal correction. However, buying interest remains at slightly lower levels than present offers. Many of the participants remained hesitant for scrap bookings over weak finish steel demand in the country on heavy monsoon.
In recent trade deals, Shredded 211 scrap from USA and UK sold in the range of USD 390-393/MT, CFR Chittagong. SteelMint’s price assessment has remained almost flat for Shredded on W-o-W basis. Not many offers for P&S scrap were available in the market nevertheless, assessment remains stable at USD 390-395/MT, CFR Chittagong.
On the other hand, HMS 1 scrap assessment has come down by USD 5-7/MT W-o-W in Bangladesh. HMS 1 from UAE sold at around USD 375/MT, CFR. While HMS 1&2 (80:20) assessment stands at around USD 360-365/MT, CFR as against USD 365-370/MT report at which few deals were sold last week.
Following downtrend in the global prices, importers remain hopeful for further corrections in coming days. Buyers are expected to resume activities in the next week but domestic steel market in Bangladesh remains flat and thus less supportive to scrap imports.
Local scrap prices in Bangladesh reported downward corrections and assessed at around BDT 35,500-36,000/MT (USD 423-429), ex-works. Domestic ship cutting plate scrap prices in the range of BDT 41,000-42,000/MT (USD 489-501) including 15% local taxes. Markets for local rebar and billets are almost flat with limited activities observed again this week.
Ship breaking market witnesses dull sentiments – Although Bangladesh managed to remain the preferable ship breaking market in terms of prices in sub-continent market this week. Recyclers remain cautious about limited availability of foreign funds and few banks were willing to sanction new LC’s especially for Suezmax tankers and VLCC’s. Prices assessed at USD 420/LDT for general dry bulk cargo, at USD 440/LDT for tanker cargo and at USD 450/LDT for containers on CNF Bangladesh basis. Earlier last week a VLOC of 26,695 LDT volumes was reported at USD 440/LT LDT levels.
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