Bangladesh’s imported ferrous scrap index witnessed a range-bound trend with a slight rise in containerised offers in shredded and HMS (80:20) from Europe due to the rising container freight rate but workable levels are still $5-8/t lower than it.
According to Australian suppliers, a significant drop in inquiries and deals from India and Bangladesh due to exorbitant freight rates. For example, the cost from Australia to Bangladesh has surged to $2000 per 20 ft and 40 ft container, marking a substantial m-o-m increase.
Effect of student protest on steel and scrap movement: The domestic market has faced challenges since the nationwide student protests began, hampering steel and scrap movements and slowing down scrap collection rates. The situation is further exacerbated by the ongoing monsoon season.
Last week, the Bangladeshi imported ferrous scrap market showed moderate activity, with buyers yet to fully resume operations post-Muharram holidays.
Indicative offers for shredded scrap from the UK/Europe were reported at $422-426/t CFR, while HMS (80:20) was offered at $403-408/t CFR.
On the other hand, bulk scrap prices from the US rose by $2-3/t with a better inquiry heard from Bangladeshi buyers lately, similarly for Japanese H2 scrap the fresh offers increased by up to $3-4/t amid the recovery in JPY against the US dollar.
A market participant reported that two additional bulk vessels were booked from the US last week. However, details regarding the exact volume and price remained unclear due to connectivity issues across the country.
Recent deals on a CFR Chattogram basis-
- Around 500 t of HMS-PNS mix from UAE were booked at $415/t.
- Approximately 2,000 t of PNS from Australia were booked at $445/t.
- Around 1000 t of HMS (80:20) from Chile were sold at $412/t.
- Around 2000 t of shredded from New Zealand were booked at $430/t.
- Approximately 500 t of HMS-PNS mix from the UAE were booked at $415/t.
- Around 1600 t of PNS from Singapore sold at 1,600 $448/t.
Domestic market: Many areas are under curfew in the domestic market, with military patrols in effect. Internet services are down, resulting in a lack of communication and no new inquiries due to recent quota protests by students nationwide. Additionally, a slowdown in the domestic steel market and challenges in financing imports have impacted scrap consumption followed by monsoon impact.
A representative from a trading company said,”Majority of the areas is under curfew, with military patrols in effect. Internet services are down, resulting in a lack of communication and no new inquiries.”
The rebar offers for Chattogram and Dhaka dropped by up to BDT 1,000/t and currently stood at BDT 92,000-92,5000/t exw Chattogram and BDT 86,000/t exw Dhaka. On the other hand, domestic shipyard scrap prices rose up to BDT 61,500-62,000/t exy Chattogram amid a slight shortage in the market.
Outlook: According to market insiders, some participants have started responding to emails, indicating that certain regions may be regaining internet access, although the entire country is not yet fully connected. If the government meets demands, the market is expected to recover in the coming weeks.
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