Bangladesh mills resume bulk scrap bookings on restocking needs

After a few weeks‘ lull, the bulk scrap market in Bangladesh gathered pace this week. Two major steel mills have booked one bulk scrap cargo each from the US for Jul’21 shipments. A rebound in scrap demand has been observed on active restocking before the monsoon.

• A major steel mill has booked a US west coast-based bulk cargo for Jul’21 shipments. The cargo comprises entirely of 32,000 t of shredded scrap. The deal has been concluded at $540/tonne (t) CFR Chittagong.
• Another major steelmaker has booked USorigin bulk cargo, comprising 22,000 t of shredded and 10,000-12,000 t of HMS 1&2 (80:20) at an average price of $535-540/t CFR for Jul’21 shipments.

With prices turning competitive, active bulk bookings have resumed, sources said.

Japanese scrap offers continue to remain less viable to Bangladesh scrap buyers due to a wide discrepancy in offers and bid prices. Japanese suppliers are more actively trading within the domestic marketing and other potential buying countries like South Korea and China.

Container scrap offers soften: Imported global scrap offers have softened this week. The scrap market in Bangladesh recorded less deals at these levels, as buyers and steel makers were waiting for prices to come down further.

• SteelMint’s assessment for shredded from the UK stands at $545-550/t CFR Chittagong levels, down by over $5-10/t w-o-w. However, no deal has been heard at this level, as buyers opted ‘wait and watch’ for a further price correction.
• Brazilian origin 1,000 t of HMS 1&2 (80:20) have been sold at $520/t CFR Chittagong.
• Fresh offers for UK/EU origin HMS 1&2 (80:20) are being quoted at $520-530/t CFR Chittagong.

Sponge iron export offers from India fall: Indian sponge iron export offers dropped to around $465-470/t CPT Benapole, equivalent to $490-495/t CFR Chittagong, Bangladesh. However, active buying interest has not been observed from Bangladesh mills.

SteelMint’s assessment for local shipyard scrap stands at BDT 49,500/t exy Chittagong.

Domestic rebar remains less demand: Major rebar mills are quoting at around BDT 70,000-72,000/t exw-Chittagong, unchanged w-o-w. However, Dhaka-based mills are offering at BDT 66,000-69,000/t exw, lower by around BDT 1,000/t w-o-w.

Domestic rebar offers in Bangladesh have remained under pressure amidst weak demand due to monsoons and strict lockdown restrictions which have been now extended till 30th Jun’21. Due to the monsoon season, the domestic market remains subdued, turning rebar demand dull.