Bangladesh: Imported scrap prices fall by $3/t w-o-w as monsoon slows construction activity

• Scrap prices drop on weak steel demand
• Mills struggle with liquidity, seasonal slowdown

Bangladesh’s imported scrap prices fell by $3/t week-on-week as the country’s steel sector continued to struggle with weak demand and sluggish activity.

Suppliers remained cautious about concluding large-volume sales as delayed mill payments and poor liquidity persisted. The banking sector’s slow response to financing needs further compounded problems, leaving many mills facing cash flow difficulties. Some buyers were also grappling with LC-related challenges, adding to the overall pressure on trade.

BigMint’s weekly assessments

• European-origin HMS (80:20) prices down by $3/t w-o-w to $353/t.
• European-origin containerised shredded was down $3/t w-o-w at $374/t.
• Japanese-origin H2 bulk prices stood at $340/t, down by $2/t w-o-w.
• US-sourced HMS (80:20) bulk prices stood at $355/t, up by $2/t w-o-w.

Market sentiment

Current imported scrap offers are reported around $370/t for shredded scrap from Australia, while Malaysian shredded scrap is quoted at $375-380/t against bids of $365/t. PNS from Hong Kong is being offered at $380/t, with buyers bidding in the range of $370-375/t.

A market participant commented, “The monsoon season is expected to continue until November, limiting construction activity and keeping demand subdued. With no new government projects announced, industry participants believe that significant recovery is unlikely before March, when a new government is expected to take shape and release pending payments, alongside fresh project allocations.”

In bulk, Japan H2 was offered at $340-345/t, while bids were at $335/t. Moreover, workable levls is around $338-340/t.

Domestic market

In the domestic market, local scrap prices remain stable at BDT 48,000 ($395/t). Rebar is quoted at BDT 76,000-78,000/t ($625-641/t), though some Chittagong-based mills have reduced offers to BDT 77,000-78,000/t ($633-641/t) amid weak demand. Heavy rains over the past 20-25 days have further dampened construction activity, weighing on sentiment.

Recent deals

• HMS 90:10 from Australia – 5,00 t sold at $350/t CFR Chhattogram.
• Another HMS 90:10 from Australia – 5,00 t sold at $350/t CFR Chhattogram.

Outlook

Bangladesh’s steel market remains under pressure in the near term, with weak demand, liquidity challenges, and seasonal factors all weighing on sentiment. Imported scrap prices may continue to face downward pressure unless post-monsoon demand revival and clarity on government policy provide fresh support.