Bangladesh: Mills resume bulk scrap bookings post Eid holidays

The imported scrap market in Bangladesh has regained momentum after the Eid holidays with two bulk scrap bookings being reported by a couple of leading steel mills.

Confirmed deals 

• In a recent deal, 35,000 t of US-origin mixed bulk cargo was booked for Jun’22 shipment, SteelMint learnt from sources. The deal was concluded at $565/t CFR Chittagong for shredded scrap.
• Around 30,000 t of Australian origin bulk scrap cargo comprising HMS and shredded was recently booked for Jun shipment. The booking price was assessed at $550/t for HMS and $560/t for shredded on CFR Chittagong basis.

Japan continues to remain out of reach of Bangladeshi mills for bulk cargo bookings owing to the preference for other cost-effective substitutes. However, the sharp depreciation in BDT has kept market sentiments subdued. The currency depreciated to 86.2 levels against USD. The exchange rate of the Bangladeshi taka dropped again against the US dollar primarily due to higher demand for settling import-payment obligations.

Containerised scrap market update

• Price indications for UK-origin shredded in containers are at $580/t CFR levels, down by a further $5/t w-o-w.
• HMS from the UK is being quoted at $550-560/t CFR, down $40-50/t w-o-w.

Rebar demand yet to pick up

The market resumes after Eid holidays this week, but the domestic market is yet to pick up as labourers are yet to return from the holidays. Hence domestic rebar prices fell further on soft demand from end-users and mills have sufficient inventory.

As per SteelMint assessment, major mills are offering rebar (10-16mm) at BDT 83,000/t ($957/t) exw Chittagong, including taxes.

Currently, Dhaka-based mills are offering rebar at BDT 72,000-74,000/t ($831-854/t) exw, down significantly by BDT 2,000/t exw last week.