- Containerised scrap trades preferred over bulk
- News of one bulk Japanese scrap cargo bookings is making the rounds
- Govt issues new guidelines on increasing COVID cases
Domestic rebar offers are soaring as Bangladeshi mills have increased domestic rebar offers by up to BDT 2,000/t ($24) in last one week. Currently offers from major mills stand at BDT 68,000-71,000/t exw Chittagong levels, although Dhaka-based mills have started quoting in the range of BDT 67,000-68,000/t exw. Raw material cost push has resulted in a hike in rebar offers.
The recently concluded Turkish deals have led to a boom in scrap prices. Imported scrap prices in Bangladesh have followed the global price trend and moved up slightly. However, the market participants have actively booked fresh slots to replenish their inventory before Ramadan Holidays.
Japanese scrap offers have started surfacing in Bangladesh market after two weeks due to vessel availability. Sources highlighted that 18,000 t of bulk Japanese H2 scrap cargo has been booked recently. The deal was concluded in the range of $460-470/t CFR Chittagong basis, however, the deal was not confirmed till the time of publishing this report.
“Market seems to be moving up slightly again. Bangladesh buyers will have to increase their price bids if they want to compete for bulk cargoes with other Vietnam and SE Asia’s scrap buyers” shared an active market partcipant.
SteelMint’s assessment for Japanese H2 now stands at $465/t CFR Chittagong level, up by $5 w-o-w.
“Mills have booked last week heavily. Also, there is a container shortage, so people will go for bulk bookings in the next one month and from June bulk market will increase as mills capacities have increased recently” sources have told to SteelMint.
Container scrap prices rise sharply:
“Around 30,000-40,000t of imported scrap has been booked this week. Trades have slowed down as prices have moved up and it will go up further by 2-5%. Local scrap prices are also up, so buyers would prefer imported scrap only” shared a Dhaka based major scrap trader.
Recent trades and offer
- In a confirmed trade UK origin 5,000 t of HMS has been booked at $435-440/t CFR Chittagong basis
- In another deal, around 2500 t of Australia origin mix scrap (HMS1 + PNS) has been sold at $449/t CFR Chittagong basis
- 1,000 t of Singapore origin HMS 1+ PNS have been sold at $465/t CFR levels
- Fresh offers for UK/EU origin shredded is being quoted at $470/t CFR Chittagong levels, up by $10 w-o-w
- HMS 1&2 (80:20) from UK/Europe are being quoted at $445-450/t CFR Chittagong, increasing by $10-15 as compared to last week’s report.
Buyers active in booking sponge iron: Around 12,000 t sponge iron has been booked by Bangladesh-based steel mills earlier this week. The deal was concluded at $425-430/t CFR Chittagong basis, Eastern India-based suppliers have confirmed the trade. The prices have increased by $15-20 against last week’s booking.
Outlook: Imported scrap offers will go up further as demand will increase before Ramadan festival. However, spike in COVID cases in Bangladesh seen in last one week has slightly turned the sentiments dull as govt. has issued revised guidelines to cut down the workforce in offices to restrict its spread.
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