Bangladesh’s imported ferrous scrap index witnessed a declining trend w-o-w driven mainly by weakening steel demand in the downstream sector. Offers in bulk H2 from Japan declined, while US US-origin bulk HMS (80:20) scrap offers rose slightly following a recent Turkish deal from the US.
As per industry reports, Bangladesh booked a bulk cargo from the US West Coast at comprising HMS at $385-390/t and Shredded at $390-395/t on a CFR basis.
In the containerised scrap market, a couple of deals were heard from Malaysia, comprising 1000 t of PNS and shredded at $422-430/t CFR levels.
On the other hand, the offer for South American HMS (90:10) heard at $410/t.
Market insiders suggest that it is normal that we are expecting to divert from Bangladesh to India — currently major steelmakers in Bangladesh are not expected to commit to any firm volumes until early October. With infrastructure activity at a standstill, steel mills are facing challenges in stockpiling, leading to a lack of significant demand for rebar in the market.
Experts said that if Bangladesh does not secure bulk vessels, approximately 5-6 bulk vessels could become available for routes from the East Coast to India. Given the current trend, bulk bookings are likely to be completed soon. Many vessels are already being redirected from Bangladesh to India due to difficulties in establishing new Letters of Credit (LCs). This situation mirrors last year’s scenario, which suggests a potential downturn in the market. Prices may drop to new recent lows, possibly reaching the $350-360/t range.
At the moment in Bangladesh, it’s heard that major steelmakers are not going to book any firm volume till Early October. In the market, infrastructure is not active so stockpiling in steel mills is a problem– showing no major Rebar demand.
Changes in assessment prices:
- BigMint’s assessment of Europe-origin containerised shredded declined by $10-14/t w-o-w and stood at $400/t, while HMS (80:20) prices stood at $390/t (declined by $4/t w-o-w).
- BigMint’s latest weekly assessment shows US-origin HMS (80:20) bulk prices increased by $1/t t0 $392/t CFR Chattogram.
- BigMint’s weekly assessment for Japan-origin H2 bulk price shows a decrease of $6/t w-o-w at $391/t CFR Chattogram.
Japanese H2 was offered at $395-400/t, with bids at $385-388/t. US offers included HMS (80:20) mix at $400/t and shredded at $410-412/t along with UAE-origin HMS 1 was offered at $415-420/t.
Domestic market overview
Domestic rebar prices remain largely stable amid a slow-moving steel market to BDT 87,000-87,500/t exw-Dhaka and BDT 92,500-93,500/t exw-Chattogram, with workable levels for billets at BDT 70,000/t and offers at BDT 73,500/t. Ship plate scrap ex-Chattogram yard was heard at BDT 7o,500-71,000/t exy, and HMS scrap at BDT 61,000-61,800/t exy.
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