The imported scrap market remained quiet for yet another week in both the bulk and container markets. However, imported scrap offers fell further to a 16-month low.
Indicative offers for Japanese bulk H2 material were at $420/t CFR levels. However, buyers were quiet and waiting for clearer market direction. Considering the recent bid from Hyundai Steel for Japanese H2 scrap at JPY 40,500/t ($296), down JPY 12,500/t ($91), after a gap of almost two months, offers are likely to fall further soon.
Meanwhile, bulk USA-origin HMS 1&2 (80:20) was at $425/t CFR, while no fresh deal has been heard.
Bulk offers are comparatively lower by $30-35/t compared to containerized material. But bulk buyers are holding negotiations since the market is dropping. However, from early next month, market participants expect that bulk buyers will be back in the market, as highlighted by reliable sources.
Container scrap market overview
In contrast, container buyers are mostly quiet and not booking any fresh slots owing to an unstable market and players are averse to taking risks, SteelMint learnt. High fluctuation in currency exchange rates, LC issue, load shedding, heavy rains, and dull demand from finished steel users kept buyers quiet.
The Bangladeshi Taka (BDT) continued its slide against the US dollar, with the national currency hitting an all-time low of 94.5 in the currency exchange market.
- Around 1,000 t of shredded from the UK/EU have been booked at $475/t CFR Chittagong levels in fresh trades.
- Fresh offers of UK-origin shredded are being heard at $475-480/t CFR levels, moving down significantly by $5-10/t levels w-o-w.
- SteelMint’s assessment for UK-origin HMS (80:20) stands at $450/t CFR, down by $5/t w-o-w.
Domestic rebar offers up
Limited demand from end users keeps steel mills under pressure to lower rebar prices. However, mills have increased rebar prices due to volatility in national currency and unsupportive scrap prices. The domestic steel market has slowed down this week due to heavy rain and flood, impacting the government’s major projects and other construction activities.
- SteelMint assessment for domestic rebar prices remained unchanged at BDT 84,000/t ($888/t) exw Chittagong levels, up by BDT 2,000/t w-o-w.
- Secondary mills in the Dhaka region are quoting rebar at BDT 80,000/t ($845/t), up by BDT 2,000/t w-o-w.
“Due to a shortage of scrap in the domestic market mills are not able to fulfill the required demand”, said a Dhaka-based scrap buyer.
Outlook: Market participants believe that sentiments are likely to remain sluggish this week, as buyers opted to wait and watch in an unstable market.
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