Lockdown scenario in Bangladesh seems to be less severe than in Pakistan and India, leaving most of the steel mills in the country still operational to some extent. However many mills are cutting their production levels with some even suspending operations, as most of the sectors have been closed which has diminished the domestic steel demand.
Buying of imported scrap in containers stood slow but some trades continued. Additionally, another bulk scrap cargo got concluded yesterday, at USD 250/MT for shredded, down by USD 25/MT against last booking.
SteelMint’s assessment for containerized shredded stood at USD 255-260/MT CFR Chittagong. Most offers stood closer to USD 260/MT, while buyers’ idea for shredded stands at USD 250/MT CFR.
HMS 1&2 (80:20) offers stood at USD 235-240/MT CFR, with one steelmaker in Chittagong booking 5000 MT of HMS (80:20) at USD 235/MT CFR from Australia, earlier in the week. HMS 1 offers stood at around USD 250/MT CFR from most origins.
“Received an offer for HMS (90:10) at USD 245/MT CFR, while buyers are targeting USD 240 for HMS 1 and USD 250 for Shredded, which is reasonable after the deals reported in Pakistan” shared a steelmaker from Dhaka.
As domestic steel sales are likely to be impacted in the prevailing situation, buyers are less likely to go for active buying in large quantities in the coming days.
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