In recent conversations with market participants SteelMint learned that imported scrap offers in Bangladesh have continued uptrend following the recent hike in global prices. After observing high sponge export prices from Indian suppliers last week, Bangladesh importers have returned to the market in full swing from holidays however sentiments remained weak as finish steel demand has not picked up fully in the local market.
Buying interest has improved now as country’s steel demand is likely to pick up amid completion of monsoon in upcoming days. The need of scrap replenishment has compelled few buyers to book it at further moved up prices by USD 8-10/MT W-o-W.
In recent deals heard South Africa origin P&S scrap sold at USD 365-366/MT, CFR and P&S offers are being quoted mostly stable at around USD 365-370/MT, CFR Chittagong. Shredded 211 scrap in containers from UK & Europe is being offered at around of USD 370-375/MT, CFR Chittagong. However, bidding from buyers still stands at around USD 365/MT, CFR. HMS 1 offers assessed at around USD 362-365/MT, CFR levels from UAE and South Africa.
Indian Sponge iron export offers to Bangladesh continue to rally.Increasing price gap between sponge iron and imported scrap is resulting in shifting interest of Bangladesh’s buyers from sponge iron to imported scrap.
“Bangladesh importers are buying P&S scrap at USD 365-368/MT levels. However, Shredded offers have moved up high on steadier seller’s sentiments. Weak local steel prices keep overall market sentiments weak however, completion of monsoon and rising enquiries may change this situation in upcoming days.” shared a market participant.
Sponge iron being costlier over imported scrap is resulting in shifting interest of Bangladesh’s buyers from sponge iron to imported scrap.
Bangladesh bulk scrap imports fall 44% in August – According to bulk vessel data maintained with SteelMint, Bangladesh has observed last 3 months’ low scrap imports in Aug’18. Bangladesh imported 88,140 MT ferrous scrap in Aug’18, down 44% M-o-M as against 157,720 MT in Jul’18.
Bangladesh ship breaking market remains keen to acquire – Bangladesh buyers remain keen to purchase new vessels with optimism on noticeable levels forthcoming. The demand is now starting to improve across all subcontinental locations and Chittagong market continue to report scarce number of vessels arriving at anchorage. Ship cutting prices increased further in Bangladesh on tightened availability. Prices assessed at USD 420/LDT for general dry bulk cargo, at USD 435/LDT for tanker cargo and at USD 445/LDT for containers on CNF Bangladesh basis. However, getting issued large value L/C from the banks has remained the matter of concern for cash buyers in Bangladesh.
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