Bangladesh steel mill books 32,000t bulk scrap cargo; offers fall marginally

Bangladesh’s larger steelmakers were active for bulk scrap bookings last week, amid favorable price levels in the market from major origins including US West Coast and Japan.

During the middle of last week, a major Chittagong based mill, booked a US origin bulk cargo from a West Coast based recycler, comprising of 32,000t of Shredded scrap in entirety, at $280/t CFR Chittagong, while the shipment for the same is expected in August.

However, towards the end of last week, USA West Coast prices witnessed a drop, following which fresh offers to Bangladesh have now come down to $ 275/t CFR for Shredded, at most.

Prior to this, the said Steelmaker had last booked a US origin bulk cargo in 3rd week of June, where a 37,000/t mixed cargo comprising of 24,000t Shredded and 13,000t HMS 1&2 (80:20) was closed at $280/t and $275/t respectively, CFR Chittagong.

Last week, SteelMint had reported that another major mill from Chittagong had booked 10,000t Japanese cargo during the opening of the week, consisting of Bushelling scrap at $287-288/t CFR Chittagong, a considerably low price as Japanese export offers had collapsed sharply over the previous 3 weeks by around $40-45/t, before looking to revive again after Kanto tender’s result last week.

Previously, the said steelmaker had booked a couple of more Japanese cargoes in June, with a 10,000t mixed cargo getting concluded in 4th week, consisting of 7,000t Shindachi and 3,000t P&S at an average price of $300/t CFR.

Bangladeshi steelmakers had resumed bulk scrap bookings in June after a 1.5 months gap on account of covid-19 pandemic pulling the steel demand very low, and also due to high inventories post very active bookings in March 2020, when more than 360,000t of imported scrap via bulk route had been concluded in a 30-day period.

Bangladesh based mills have also recently booked sponge iron from India. Prices were reported stable at around $240/t CPT Benapole.

Now, with US West Coast scrap prices having moved down further, few other steelmakers may look to secure some material soon, although Bangladeshi mills will be cautious for active bookings in larger quantities, for at least a few more months, given the subdued steel demand, low production levels etc.