Bangladesh: Imported scrap prices witness mixed trend; liquidity concerns weigh on market

• Steel demand weak amid stalled infrastructure, tight liquidity
• Mills cautious as LC issues hamper scrap procurement

The imported ferrous scrap market in Bangladesh witnessed moderate inquiries with largely stable workable price levels seen over the last seven days.

The domestic scrap and finished steel market in Bangladesh continues to face downward pressure, primarily driven by ongoing political issues and liquidity constraints.

BigMint’s weekly assessments

• European-origin HMS (80:20) prices inched down w-o-w to $360/t.
• European-origin containerised shredded decreased by $1/t w-o-w to $377/t.
• Japanese-origin H2 bulk prices stood at $360/t CFR Chattogram, up by $1/t w-o-w
• US-sourced HMS (80:20) bulk prices stood at $373/t inched up by $1/t w-o-w.

While major Chattogram-based mills continue to navigate the market with relative ease, thanks to stronger capital access and established banking relationships, smaller firms are struggling.

These companies face significant hurdles in opening Letters of Credit (LCs), which restricts their ability to import raw materials and participate actively in trade, further slowing overall market activity.

Recent Deals

• Around 5,000 t Australian HMS 80:20 booked at $355/t CFR Chattogram
• Around 2,000 t Korean shredded sold at $385/t CFR Chattogram
• Around 1,000 t Australian HMS 1 concluded at $360/t CFR Chattogram

Bulk offers: Shredded (Australia) at $375/t, HMS at $355/t CFR.

Domestic market

“Local market is down with scrap trading at BDT 53,000–55,000/t ($435–451/t) and rebar at BDT 80,000–82,000/t ($657–673/t) in Dhaka, and BDT 83,000–85,000/t ($682–698/t) in Chattogram,” said a Dhaka-based buyer. “The rainy season has begun, so construction activity is moderate and expected to slow further ahead of Eid next month. Production is currently around 90%, though some mills are under financial pressure. Overall, the market sentiment remains moderate.”

• Domestic scrap: BDT 53,000-55,000/t ($435-452/t) ex-yard
• Rebar (Dhaka): BDT 80,000-82,000/t ($657-674/t) ex-works
• Rebar (Chattogram): BDT 84,000-86,000/t ($690-707/t) ex-works

Chattogram Custom House reports surge in revenue

Chattogram Custom House, the largest customs station in Bangladesh, has recorded revenue collections of BDT 62,818.92 crore during July-April of FY’24, reflecting a notable 13.14% y-o-y growth.

According to customs and trade sources, the consistent rise in collections signals improving import activity and is seen as a positive indicator of economic stabilisation and recovery momentum.

Outlook: Market sentiment in Bangladesh remains subdued amid a lack of new government infrastructure projects. The stalled project pipeline has weakened steel demand, while tight liquidity and economic uncertainty continue to restrain buyer’s confidence in the near term.