Bangladesh: Imported scrap prices fall by up to $3/t w-o-w; weak steel demand keeps buyers cautious

• Mills restock selectively amid falling global scrap prices
• Construction slowdown weighs on overall steel demand

Imported ferrous scrap prices from the EU and UK into Bangladesh dropped by up to $3/tonne (t) w-o-w, as buyers focused on near-shore bookings amid subdued steel demand and uncertainty in the deep-sea market.

As per sources, workable levels for US West Coast HMS (80:20) bulk cargoes were at $370-375/t CFR in the last seven days, with prices under pressure from weak deep-sea demand in Turkiye. Japanese H2 bulk offers declined slightly to $356-358/t CFR, down from $360/t last week. Containerised PNS from Singapore was offered at $384-385/t, while bids remained lower at $378-380/t.

BigMint’s weekly assessments

• European-origin HMS (80:20) prices were down by $3/t w-o-w to $360/t.
• European-origin containerised shredded dropped by $2/t w-o-w to $378/t.
• Japanese-origin H2 bulk prices stood at $358/t CFR Chattogram, down by $2/t w-o-w.
• US-sourced HMS (80:20) bulk prices stood at $370/t, inching up by $1/t w-o-w.

Market commentary

Mills made selective bookings, with tepid steel demand and falling global scrap prices keeping buyers cautious. Moreover, a slowdown in construction activity pressured steel consumption.

A regional steel mill from Chattogram noted, “The market remains dull due to weak demand, ongoing political uncertainty, and tight liquidity. Even buyers with funds are hesitant, and construction activity is minimal, with few new projects moving forward. The rainy season is also expected to dampen activity further over the next couple of months.”

As per a Chattogram-based mill, “Bangladeshi mills have closed multiple HMS (80:20) deals at $365-370/t, although the global trend is downward – India saw $350/t levels for the same grade this week. Some mills seized this free-fall in prices as an opportunity to restock some material before a rebound takes place. On the other hand, bulk scrap inquiries increased this week from major Chattogram mills.”

A Chattogram-based trader stated, “Containerised offers are currently at $370/t for HMS from Australia, $390/t for shredded, and $400/t for Busheling. In bulk, US West Coast HMS is being offered at $370-375/t, while Singapore HMS stands at around $375/t.”

A Dhaka-based trader said, “Domestic scrap prices dropped slightly to BDT 53,000-54,000/t ($436-444/t) exy Chattogram. Rebar is priced at BDT 84,000-85,000/t ($692-701/t) in Chattogram and BDT 81,000-82,000/t ($669-677/t) in Dhaka. Billet prices in Dhaka are at BDT 68,000-70,000/t ($561-577/t), with limited movement expected in the near term.”

Recent deals

• 1,500 t of Australian-origin HMS 80:20 – $360/t CFR Chattogram.
• 1,000 t of Australian-origin shredded – $380/t CFR.
• 1,000 t of Singapore-origin PNS – $390/t CFR.
• 2,000 t of Australia/New Zealand-origin shredded – $382/t CFR.
• 2,000 t of Australia/New Zealand origin HMS 80:20 – $364/t CFR.
• 2,000 t of Singapore-origin PNS – $390/t CFR.
• 1,000 t of Malaysia-origin H2 Bundle – $335/t CFR.
• 4,000 t of Australian-origin HMS 80:20 – $360-365/t CFR.
• 3,000 t of Australia-origin shredded – $385/t CFR.
• 4,000 t of Australian-origin shredded – $379/t CFR Chattogram

Outlook

Market sentiment is likely to remain subdued in the near term, with a potential shift only after the national elections in late 2025 or early 2026. In the absence of political and financial stability, the sluggish market conditions are expected to persist, limiting any meaningful recovery.