Imported scrap trades to Bangladesh in containers turned slow this week as global offers moved up further. Medium steelmakers are not finding increasing prices of imported scrap viable, at a time when not only the domestic finished steel prices are under pressure, but also the alternative raw materials including imported DRI from India as well as local ship yard scrap are available at significantly cheaper levels. The total raw material demand also stands low due to mills operating at lower production levels.
SteelMint’s assessment for containerized shredded 211 scrap from European origins stands at $300/t CFR Chittagong. Latter last week few offers from traders were available at$295/t CFR, however this week, all offers are $300/t and above. No container route buyer has bid for Shredded above $290/t CFR in the last few weeks.
HMS trades in containers too slowed down in comparison to last week. Only Brazil origin HMS 1&2 (80:20) deals were concluded at around $265/t CFR. Australian origin HMS prices rallied up due to shortage and low scrap generation witnessed by Australian yards, with HMS 1&2 (80:20) prices from Australia being quoted at $280-285/t CFR Chittagong, while HMS 1&2 (90:10) reported around $285-290/t CFR.
Meanwhile, in bulk market, USA origin cargo prices had fallen below USD 275/t CFR Chittagong for shredded basis in latter half of last week, due to drop in USA West Coast prime, shortly after a Chittagong mill had booked a 32,000 t Shredded cargo from a US WC supplier at $280/t CFR in middle of last week. Inquiries for further bulk cargoes are going on as well.
Few steel mills booked Indian origin DRI recently at around $240/t CPT Benapole land port, which translates to around $258/t CFR Chittagong.
Meanwhile, local shipyard scrap prices are stable at BDT 26,000/t ex yard Chittagong, inclusive of all taxes, after observing sharp downtrend in last month. Domestic billet prices have fallen to BDT 39,500-40,000/t exw Dhaka and Rebar prices are in the range of BDT 49,000-50,000/t exw Dhaka for mid-size mills in Dhaka. In comparison to July 2019, these levels are lower by BDT 9,000-10,000/t, when mid-size mills were offering Rebars at BDT 58,500-59,000/t exw.
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