Bulk bookings from the USA and Japan were reported at decreased prices.
Major steelmakers of Bangladesh have booked a few bulk cargoes of imported scrap recently, at favourable price levels, with bulk market in the country now regaining activity after more than several weeks of covid-19 induced slowdown, as buyers look to secure more material for their August inventory, keeping in mind the gradual scaling up of production levels at their mills.
* In a latest booking, a prominent steelmaker from Chittagong has booked a 37,000 t of bulk cargo from a US West Coast based recycler, consisting of 24,000 t of Shredded scrap at $ 280/t and 13,000t of HMS 1&2 (80:20) at $275/t CFR Chittagong.
The first US origin bulk booking by Bangladesh since mid-April, has concluded at a significantly lower price level than being currently offered by global suppliers. Many global trade sources confirmed that this cargo was earlier being offered to Bangladesh at around $300/t CFR (for Shredded) level till last week, and the said buyer was bidding at $275/t level earlier, finally concluding at $280/t CFR.
* In addition to this, another major mill in Chittagong booked a Japanese origin 10,000t cargo recently, comprising of 3,000t of P&S and 7,000t of Japanese Shredded, at an average price of $300/t CFR Chittagong, for July shipment.
Prior to this, in the 2nd week of June, the same mill had booked a 10,000t Busheling cargo from Japan, at $ 303/t CFR Chittagong, which was also lower than the prevailing prices in the market at that time.
It is being reported that the Turkish mills have recently slowed down their buying activities, on account of the Holiday season and quite active bookings for July shipments earlier in the month. Hence, the lesser interest by Turkish mills could have encouraged the US supplier to quickly book the cargo to the interested Bangladeshi mill at a considerable concession.
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