Bangladesh scrap buyers have raised inquiries for bulk cargoes for Oct’21 shipments on expectations of steel demand picking up in the coming month. Perhaps buyers are likely to resume bulk scrap bookings more actively from next week owing to the upcoming construction season in Bangladesh, SteelMint learnt from market sources. Meanwhile, freight charges from Japan to Bangladesh have increased which may lift scrap offers in the coming days.
- Indicative offers for US-origin shredded material in bulk are being cited at $520-525/tonne (t) CFR Chittagong levels.
- Apart from a bulk US scrap deal reported a week ago, another deal for 25,000 t of bulk scrap from Australia was heard to have been booked at $515/t CFR Chittagong.
- After the Kanto tender outcome last week, Japanese scrap offers to Bangladesh have increased significantly by $30-40/t CFR levels. Japan’s H2 scrap offers have been indicated at $570/t CFR Chittagong, due to increased freight rates, SteelMint learnt.
“Major mills would import more bulk scrap but the main problem now is of global container shortage,” said a scrap trader based in Bangladesh.
Imported scrap trade in containers continues: Containerised imported scrap trade continued to take place but with limited volumes.
- Shredded from UK/EU is being offered at $535-540/t CFR Chittagong levels but no active deals were heard.
- HMS 1&2 (80:20) is being quoted at $500-510/t CFR. A few suppliers are quoting at $495/t CFR levels.
Re-bar offers from major mills fall slightly: Bangladesh steel mills have floated re-bar (10-16mm) offers at BDT 71,500-73,000/t ($833-850) exy-Chittagong, down BDT 500/t, w-o-w, as per SteelMint’s assessment. Re-bar demand is yet to see any major improvement, as per sources.
Offers by Dhaka-based plants are stable at BDT 66,000-67,000/t exy. A deal was concluded from a Dhaka-based mill yesterday, 14 Sept’21, for 400 t of re-bar at BDT 66,800-67,000/t exy, as per sources.
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