Bangladesh: Imported scrap trades gain momentum as mills start restocking ahead of Ramadan

• News of two US origin bulk scrap cargoes bookings are making rounds
• Around 40,000-50,000 t imported scrap in containers booked by Dhaka based mills recently

Imported scrap trades in Bangladesh have remained active this week with bookings being heard both in containers as well as bulk segments. Apart from major mills in Bangladesh like BSRM, Abul Khair etc, mills in Dhaka have also been aggressively booking imported scrap this week.

Containerised scrap trades bullish in Dhaka: Various trade activities have been observed for imported scrap at lower-level prices in last few days in Dhaka. Market insiders believe that these prices may sustain for the next few weeks.

“Trade activities are good in Dhaka. Around 40,000-50,000 t imported scrap have been sold in the last few days. Before Ramadan starts buyers would remain active in the market till the 1st week of April and after that trades may slow down till mid-May in observance of Eid”, a prominent Dhaka-based scrap trader highlighted.

• Fresh offers for UK/EU origin shredded is being quoted at $460-470/t CFR Chittagong levels, down by $10 w-o-w
• HMS 1&2 (80:20) from UK/Europe are being quoted at $450-460/t CFR Chittagong, active trades are being seen

News of two bulk US scrap bookings making rounds: No firm bulk Japanese scrap offer was heard this week, however, few market sources shared that two USA origin bulk scrap cargo bookings were concluded in the last two days, though the price and quantity were not confirmed till the time of publishing this report. Some traders indicated bulk US HMS price to be around $450-455/t CFR.

SteelMint’s assessment for Japanese H2 now stands at $460/t CFR Chittagong level, down by $12 w-o-w.

Indian sponge iron export price up by $5/t w-o-w: Eastern India-based suppliers have reported improvement in demand for sponge iron as the major mills from Bangladesh have actively resumed procurements after a long gap. Fresh deals of about 8,000-10,000 t of sponge iron have been booked at $410-415/t CFR Chittagong basis. With these recent deals, SteelMint’s benchmark sponge iron export price assessment has increased by $5/t, w-o-w. Increasing domestic sponge prices remains the key factor behind the rise in export prices.

Domestic rebar offers largely stable: Rebar offers from secondary mills remained mostly
stable this week. Currently, offers are being quoted in the range of BDT 64,000-65,000/t exw.

Local shipyard scrap prices too, remain unchanged w-o-w and are being cited at around BDT 43,000-44,000/t exy level. There is scrap availability in the local market, hence prices are likely to come down, SteelMint learnt.

Outlook: Due to increased freight rates, most of the yard owners are holding the cargo as no one wants to sell cheap. They are anticipating that prices may rebound soon. SteelMint expects imported scrap trades to pick up further in the coming days on restocking needs.