Bangladesh: Imported scrap offers up further on limited availability

• Bulk scrap offers up by $40 w-o-w
• Indian sponge iron offers for Bangladesh up by $10 w-o-w
• Bangladesh steel mills raise rebar offers by around BDT 4,000/t ($47)

The global scrap prices continue to move north for the last two months and has now witnessed a multi-year high level. Major suppliers from the UK/EU may have closed their yards for the winter holidays which coupled with tight scrap availability is keeping the prices high.

What is making matters worse for Bangladesh is the fact that the Japanese suppliers are holding back on fresh offers as they are keenly watching other Southeast Asian countries, which are currently bidding at higher levels, SteelMint learned from channeled sources.

SteelMint’s assessment for bulk Japanese H2 stands at $485/t level, up by $35 compared to last week’s offers reported at $450/t CFR Chittagong basis. Meanwhile, US origin suppliers have quoted bulk HMS offers at $500/t CFR level, moving up significantly by $35 w-o-w.

Containerised market overview- Imported scrap offers in containers to Bangladesh have soared around $100 in the last one month. There were however limited buyers at this price and the domestic market remains less supportive. SteelMint’s assessment for containerized shredded stands at $470/t CFR Chittagong level, up by $35 on a weekly basis.

70-80% of Bangladesh steel mills depend on imported scrap while the remaining 20% continue their steel production with domestic raw materials. This was highlighted by a reliable source in Bangladesh.

Recent offers /deals in containers- 

• Fresh offers from UK/EU origin shredded have been quoted around $470-475/t CFR Chittagong levels
• A Bangladesh-based trader sold Australian origin 1,000 t shredded scrap at $460/t CFR earlier this week
• Furthermore, other deals have also concluded, in which 4,500 t of UK/Ireland origin HMS 1&2 (80:20) and 1,000 t of Chile origin HMS 1&2 (90:10) have been sold at $453/t CFR and $455/t CFR Chittagong basis respectively.
• Fresh offers for HMS 1&2 (80:20) from different origins, suppliers are quoted at around $455-460/t levels, moving up sharply by $25-30 on a weekly basis.

Indian sponge iron offers for Bangladesh up by $10 – Sponge iron export prices have increased this week by $10/t in recent deals of about 8,000 t concluded for Bangladesh. The deals have been recorded at $400-405/t CPT Benapole (equivalent to $415-420/t CFR Chittagong, Bangladesh).

Mills raise rebar offers on higher production cost- Rebar prices of major steel mills have observed an increase of BDT 3,000-5,000/t to BDT 63,000- 65,000/t exw Chittagong levels. Rebar offers from the secondary mills are trading at BDT 59,000/t level in Dhaka region. Mills have raised rebar offers on the back of a continuous increase in the cost of production amid rallying scrap prices.