- US bulk offers uncertain amid ME tensions
- NOC restrictions stall fresh vessel arrivals
Bangladesh’s imported ferrous scrap market remains slow, with a few trades taking place in the last seven days. Overall, prices dropped by up to $4/tonne (t) as the steel market remains dull, with fewer players active, offering discounts to lure buyers.
BigMint’s weekly assessments
- European-origin HMS (80:20) prices inched down by $3/t to $359/t.
- European-origin containerised shredded was down $4/t w-o-w to $371/t.
- Japanese-origin H2 bulk prices stood at $357/t CFR Chattogram, down by $2/t w-o-w.
- US-sourced HMS (80:20) bulk prices stood at $369/t, down by $1/t w-o-w.
Recent containerised offers for Australian HMS 80:20 stand at $355-356/t CFR Chattogram, while bulk enquiries for mixed HMS grades from Australia are being heard at slightly higher levels of $358-360/t.
Market commentary
An Australia based trader commented ,”We recently sold around 3,000 t of HMS 1 (90:10) to Chattogram at $356/t CFR. Shredded is hovering at $365-366/t levels, while HMS 80:20 is trading near $350/t. Buyers are currently negotiating hard, with workable levels for HMS 1 closer to $355/t.”
A Chattogram based buyer shared that around 1,500 t of PNS from Malaysia got booked at $375-378/t CFR, but shredded and HMS offers from Australia still seem a bit high as compared to buyers expectation as they are comfortable around $355/t for HMS 1.”
A South East Asian scrap sellers said bulk offers from Japan suggest a $10-15/t premium for Chattogram over Vietnam, on the other hand, US bulk remains uncertain amid the Middle East crisis.”
Domestic market update
According to market participants, domestic market prices remain largely stable with no major sales taking place last week. Mills are cautious about their production levels, looking at the dropping steel demand across regions.
In the ship recycling market, Bangladesh’s ship recycling sector is advancing with HKC upgrades, as more yards move toward compliance. However, vessel imports remain stalled due to continued NOC restrictions, with only one small RoRo vessel reported offshore in the last two weeks. Some non-HKC yard deals await clearance once certifications are granted.
Steel plate prices fell by $7-8/t to $546-548/t. The Taka weakened slightly, and Eid holidays have further slowed activity. Weak demand and monsoon disruptions have redirected tonnage to India. Still, this lull is helping Bangladeshi yards finalise key HKC upgrades, though price and demand remain under pressure.
Chattogram Port received 2,985 LDT compared with 11,842 LDT in the previous week.
Outlook
Buyers in Bangladesh are playing it safe as steel demand stays soft and prices low. With monsoon disruptions still in play, scrap imports may stay slow for now despite some HKC progress on the ship-breaking side.
Leave a Reply