Bangladesh: Buyers remain less active in imported scrap bookings on bid-offer disparity

• US origin bulk offers to Bangladesh are being quoted at $500-510/t CFR Chittagong  
• SteelMint’s assessment for bulk Japanese H2 stands at $495/t level, up by $10 w-o-w 

Bulk scrap market in Bangladesh has slowed down during the last week of Dec’20 and witnessed limited activities on high offers amid disparity between offers and bids. US origin bulk HMS offers to Bangladesh are being quoted at $500-510/t CFR Chittagong level, while buyers are bidding at $470-480/t CFR basis.

“Sellers are preferring to sell instead to other markets like Vietnam. So, if Bangladesh based mills need to book bulk cargoes, then they will have to increase their bid price”, shared an active market participant in Bangladesh.

SteelMint’s assessment for bulk Japanese H2 stands at $495/t level, up by $10 over a week. There would be no firm offers to Bangladesh for Japanese H2 till the 1st week of Jan’21, SteelMint learnt from a reliable source.

Buyers remain silent, trades remain limited – As imported scrap prices are not matching with the finished steel prices, high level of offers is not acceptable by the buyers at the moment. Thus, buyers have adopted ‘wait & watch’ approach this week for imported scrap bookings, highlighted a prominent market participant.

“Prices may increase further in January after holidays”, shared by a prominent steelmaker in Bangladesh.

Recent deals and offers –

• Fresh offers from UK/EU origin shredded have been quoted around $470-480/t CFR Chittagong levels, up by $7/t w-o-w
• A Bangladesh based trader has sold 3,000 t of UK origin HMS 1&2 (80:20) at $455-460/t CFR Chittagong, and in another deal around 1,000 t of Australian HMS 1&2 (80:20) at $460/t CFR Chittagong basis
• While Kuwait origin shredded and PNS are being quoted at $480/t and $500/t CFR Chittagong level respectively

Indian sponge iron export prices for Bangladesh remain stable –  Indian sponge iron export prices have remained stable on weekly basis and are hovering at $400-405/t CPT Benapole. Deals of around 4,000 t of sponge iron from India this week for Jan’21 shipment at around $400-405/t CPT Benapole.

Bangladesh based mills likely to raise rebar offers –  Rebar prices of major steel mills have observed stability over a week and currently stands at BDT 63,000- 65,000/t exw Chittagong levels. Rebar offers from the secondary mills are trading at BDT 61,000/t level in Dhaka region. However, it is expected that prices are likely to increase by BDT 3,000-5,000/t from the 1st week of Jan’21.