Bangladesh-based steel mills remained active in booking imported scrap. The reason is, this is the peak season for infrastructure and construction, SteelMint understands.
Bulk scrap offers fall:
Imported bulk scrap offers have dropped slightly after a small correction was witnessed in bulk freight rates. Offers for US-origin HMS are at $575-580/t CFR Chittagong – lower by around $5-10/t w-o-w.
However, the market remains silent due to the absence of trade deals.
Due to limited bulk offers from Japan and the USA and bid-offer disparities, a leading mill in Bangladesh booked an EU-origin bulk vessel, carrying 35,000 t of HMS (80:20) for Dec’21 shipment towards last weekend, SteelMint learnt from sources. The deal has been concluded at $560/t, CFR Chittagong.
On the other hand, Japan-origin bulk scrap offers too have come down after the Kanto scrap export tender’s result were seen dropping by $19/t FAS m-o-m. “Bulk deals are likely to happen soon, as offers are already coming down,” said a Japanese scrap trader.
Bangladesh’ bulk ferrous scrap imports declined by 20% m-o-m in Oct’21, as per vessel line-up data maintained with SteelMint. The country imported 230,000 t of scrap in October as against 300,000 t in September. USA continued to be the largest scrap exporter to Bangladesh at 200,000 t in October as against 220,000 t in September.
Containers booking actively taking place
Bangladeshi steelmakers were active in booking containerised scrap. Many major mills have also shifted to container booking. Imported shredded scrap offers are mostly stable at $580-585/t CFR Chittagong levels.
Steel mills have actively restocked since winter is the most preferred season for rebar consumption.
Rebar prices continue to remain on higher side
The country’s domestic market was slow, as rebar prices remained high. Steel consumption slowed down, due to a hike in prices.
Major mills kept domestic rebar prices stable for another week. At present, the offers from mills are at BDT 77,000-79,000/t ($900-923/t) exy-Chittagong. Dhaka-based plants too have offered BDT 74,000/t ($862/t) on exy basis, unchanged w-o-w.
Outlook
Bulk scrap bookings are likely to take place by mills on restocking needs.
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