Bangladesh: Imported scrap trade slow; but one bulk cargo booked

The imported scrap trade in Bangladesh is moving at a slow pace. Offers from major supplier countries like the US, UK, etc remained at high levels. However, a fresh US-origin bulk cargo was booked recently as buyers return for bulk cargo.

Bulk deal concluded from US; Japan quiet

Around 32,000 tonnes of US-origin bulk scrap cargo, comprising HMS (80:20) and shredded material, was booked recently for Apr ’22 shipments. The deal prices were heard at $710/t and $715/t CFR Chittagong respectively. Prices rose by a significant $115/t in the last two weeks, after Turkey’s imported scrap prices surged to an all-time high amidst global trade tensions.

Suppliers are likely to quote fresh offers at higher levels after the deal is concluded.

“Currently, the market is unstable, with no inquiries from the buyer’s side after the last deal was concluded for US bulk cargo,” said a bulk scrap trader.

There were no indications from Japanese scrap suppliers due to discrepancies between bids and offers. Offers for Japanese H2 material have surged to a new high post-the monthly Kanto Tetsugen scrap export tender which was concluded last week at an increased bid of $66/t m-o-m. A total of 10,000 t of scrap was awarded and the average price for H2 scrap stood at around JPY 63,510/t ($548/t) FAS, higher by JPY 7,665/t ($66/t) from March, SteelMint learnt from sources.

Japanese suppliers are looking for potential buyers who can pay a high price, SteelMint understands.

Container scrap market remains active in Bangladesh

Containerized imported scrap trade continued to happen, as buyers actively procured ahead of the Ramadan month. Scrap offers remained at high levels. However, prices have softened slightly.

Recent offers & deals

• In a recent deal concluded, around 2,000 t of UK-origin shredded have been booked at $655-660/t CFR Chittagong .
• HMS offers are being quoted at $625/t CFR.

Rebar market subdued

The domestic rebar market remained subdued owing to slow demand from end-users. Key players like BSRM, GPH, KSRM etc have kept rebar offers unchanged at BDT 85,000-87,000/t ($987-1011/t) exw. Due to scarcity of scrap, mills have slowed down production, considering the upcoming holidays.

On the other hand, Dhaka-based steel mills kept rebar prices unchanged at BDT 82,000-84,000/t exw ($952-975/t).

The mills are likely to await clarity on offers before making the next round of purchases.