Bangladesh: Imported scrap prices show mixed trends; bulk offers fall by up to $4/t w-o-w

• Bid-offer gaps, weak construction demand slow trade
• HKC issues, inflation keep ship-recycling yards idle

Bangladesh’s imported scrap market showed mixed trends w-o-w, with heavy monsoon rains and weak construction demand keeping trade subdued. Chattogram-based mills stayed cautious, with limited bulk inquiries, as sentiment continued to weaken amid poor buyer interest for steel.

BigMint’s weekly assessments

• European-origin HMS (80:20) prices inched up by $1/tonne (t) w-o-w to $354/t.
• European-origin containerised shredded was stable w-o-w at $374/t.
• Japanese-origin H2 bulk prices stood at $340/t, down by $4/t w-o-w.
• US-sourced HMS (80:20) bulk prices stood at $351/t, dropping by $3/t w-o-w.

Market commentary

As per a Dhaka-based mill source, current workable levels were heard at $375/t CFR for PNS and $370/t CFR for shredded from Australia.

According to a Chattogram-based trader, offers for Australian scrap stood at $380/t CFR Chattogram for shredded 211 (against bids of $370/t) and $383/t CFR for PNS (with bids indicated at $372-375/t). He noted that demand for deep-sea cargoes was highly selective, with buyers showing a preference for short-sea scrap from origins such as Hong Kong, Singapore, and Malaysia.

As per market insiders, Bangladesh’s imported scrap market witnessed some fresh Japanese H2 offers, though buying interest stayed limited, as mills remained cautious amid regional competition. Offers were heard at $340-345/t CFR Bangladesh, which translates to JPY 41,500-42,500/t FOB Japan.

Bulk scrap updates 

• It is heard that a fresh bulk cargo of 28,000 t from Australia was sold to Chattogram, comprising HMS at $345/t CFR, shredded at $350/t CFR, and bonus grade at $355/t CFR.
• A mid-sized bulk vessel with 10,000 t of HMS from Singapore arrived at Chattogram Port, booked by a local mill during early to mid-August.

Rebar market updates

Bangladesh’s rebar market was sluggish, as weak construction activity kept buyers sidelined and sales muted. Mills maintained offers with only a slight w-o-w uptick in Dhaka at BDT 77,000-78,000/t ($633-641/t), while Chattogram levels were higher at BDT 81,000-82,000/t ($666-674/t).

Inflation, idle yards weigh on Bangladesh ship recycling

Bangladesh’s ship recycling market remained stalled for the second week, with no new arrivals. HKC compliance gaps and uncertified yards kept activity fragmented, leaving Chattogram behind India and Pakistan. Local fundamentals stayed weak, with recycled steel at $542/t, smaller vessels ignored, and only large LDT ships attracting interest. High inflation (8.55%) and political uncertainty further paralysed sentiment. Chattogram Port received 29,223 LDT, unchanged w-o-w.

Outlook

Mills may continue selective bulk bookings alongside sourcing some containerised scrap, but a broader market recovery appears unlikely as rebar demand stays sluggish, and ship recycling remains stalled under inflationary and compliance pressures.