In Bangladesh, the imported ferrous scrap market saw a drop in activities in terms of fresh booking with relatively low demand ahead of the Eid holidays and a slower local steel market demand. Containerised shredded scrap from the UK and Europe improved by $4-6/tonne (t) w-o-w to $420-422/t, while HMS (80:20) offers also edged up to $405/t CFR Chattogram.
Approximately 6,500-7,000 t of containerised deals were closed in the last seven days, involving various grades and origins, such as Australia, Chile, the UAE, the US, and Hong Kong.
BigMint’s assessment for Europe-origin shredded scrap (containers) increased by $6/t to $420/t, while HMS (80:20) containers were slightly up by $5/t w-o-w to $405/t.
As per market participants, bulk inquiries are still going on from Chattogram mills, with Australia and US suppliers. Both parties are seeking better negotiations.
BigMint’s weekly assessment for US-origin HMS (80:20) bulk scrap witnessed a $2/t hike w-o-w to $397/t CFR Chattogram.
Japanese H2 scrap offers were in the range of $392-394/t, while US-origin HMS (80:20) bulk indicatives ranged from $398-400/t, with buyer inquiries at around $388-390/t CFR Chattogram.
A mill source said, “HMS (80:20) grade tradable enquires are at $390-395/t and shredded scrap indicatives are at $410/t from the US and Australia in container shipments.”
A representative from a major trading house noted that smaller mills in Dhaka are facing problems with LC clearances with banks’ paperwork slowing during approval. This is further constraining liquidity during Ramadan. The market has been impacted by sluggish steel demand amid limited and slow-moving infrastructure projects.
Recent deals:
Around 1,500 t of PNS from Hong Kong were booked at $435/t CFR Chattogram.
Approximately 3,000 of shredded from Australia were sold at $418-422/t CFR Chattogram
Around 2,000 t of HMS 1 from the US were booked at $405-408/t CFR Chattogram
Approximately 1,000 t of HMS 1 from Australia were booked at $412/t CFR Chattogram
Around 200 t of PNS from UAE was booked at $415/t CFR Chattogram
Approximately 1,000 t of HMS 1 from UAE sold at $410/t CFR Chattogram
Around 1,000 t of LMS bundles from Chile were booked at $372/t CFR Chattogram.
Domestic market: In the domestic sector, rebar prices hovered at BDT 89,000-90,000/t ($811-820/t) exw-Dhaka, and BDT 94,000-95,500/t ($856-870/t) ex-Chattogram, while billets were at BDT 76,500-77,000/t($696-701) exw. Local ship-breaking scrap prices are at BDT 64,000-65,000/t ($583-592/t).
As per a steel mill representative, now the steel market is stable for both, but demand is going down due to the approaching Eid vacations.
Outlook: In the short term, imported scrap prices are likely to increase, especially with the ongoing containerized scrap bookings from vital sources such as Australia, Hong Kong, and the UAE. Additionally, bulk scrap prices into Bangladesh are anticipated to follow the global price trend and rise accordingly.
