Imported bulk scrap trades have resumed in Bangladesh and two bulk cargoes have been booked from the US and Australia, SteelMint learnt from sources. Interestingly, bulk cargo bookings have resumed after a prolonged gap of five months. Chittagong-based major mills have booked bulk cargoes for February shipments.
- A major mill has booked a bulk cargo from the US comprising 32,000 t of HMS (80:20) and shredded at $448/t CFR and $458/t CFR Chittagong, respectively.
- Similarly, the second cargo from Australia comprising 30,000 t of HMS (80:20) and shredded scrap was booked at $445/t CFR and $465/t CFR Chittagong, respectively. The last bulk deal was recorded at $455/t for HMS from the US in August 2022.
Despite the strict restriction on new LC openings, some mills have booked bulk cargoes while others are cautious due to LC concerns. The LC issue has led to a slowdown in fresh import scrap bookings over the last few months.
Fresh offers for bulk US-origin HMS are at $450/t CFR, stable w-o-w. Prices are stable as Turkish mills have slowed down bookings. Imported scrap prices are likely to remain high due to tight supply.
Additionally, no firm offers were received for Japanese material. Japanese scrap export offers are likely to emerge clearly after the Kanto scrap export tender scheduled for 12 January. Last month, around 13,000 t of scrap was awarded, and the average price for H2 scrap stood at JPY 47,568/t ($349/t) FAS in the Kanto Tetsugen tender.
Container bookings limited
Containerised imported scrap trades are moving slowly. Mini mills are struggling with LC issues. Meanwhile, a few small slots seem to have been booked. Furthermore, increased import scrap prices, in response to global cues, has left buyers with no choice but to wait and watch.
Fresh containerised offers for UK-origin shredded scrap are at $475-480/t CFR, up $10/t w-o-w.
Domestic rebar prices unchanged
Mills in the domestic market kept their rebar prices unchanged this week. Due to increased input costs and raw materials prices, mills may increase finished steel prices. However, steelmakers are under pressure due to limited finished steel demand from downstream consumers.
SteelMint assessed domestic rebar prices at BDT 91,000-94,000/t ($859-887/t) exw-Chittagong. Dhaka-based mills have kept their rebar offers unchanged for the sixth consecutive week at BDT 85,000/t ($802/t). Prices are stable w-o-w.
Currently, local scrap is being traded at BDT 64,000/t ex-yard, unchanged w-o-w.
Leave a Reply