Bangladesh: Imported scrap prices fall w-o-w amid weak mill inquiries, sluggish finished steel sales

• Mills running at 50-60% capacity amid weak market sentiment
• Ship recycling slows with limited vessels, minimal port activity

Bangladesh’s ferrous scrap and steel market remained under pressure last week, with domestic rebar prices falling BDT 1,000-1,500/t ($8-12/t) amid weak demand. Lack of new government projects and ongoing rainfall dampened construction activity, keeping buying sentiment subdued. Scrap prices also inched down amid limited inquiries.

BigMint’s weekly assessments

• European-origin HMS (80:20) prices inched down by $1/t w-o-w to $349/t.
• European-origin containerised shredded inched down by $1/t w-o-w to $370/t.
• Japanese-origin H2 bulk prices stood at $341/t, decreasing by $1/t w-o-w.
• US-sourced HMS (80:20) bulk prices dropped by $2/t w-o-w to $349/t.

Market commentary

“Domestic scrap prices were at BDT 45,000-48,000/t ($370-395/t), with rebar at BDT 77,000-78,000/t ($632-641/t) in Chattogram and BDT 73,000-75,000/t ($599-616/t) in Dhaka. Bulk offers stood at $340-360/t (HMS and shredded) CFR, while containerised scrap ranged between $340-375/t. Most mills were running at 50-60% utilisation, as finished steel sales remained sluggish,” said a major Chattogram-based importer.

A Dhaka-based scrap supplier said offers from Brazil and Chile for HMS 80:20 and 90:10 were at $350-360/t CFR Chattogram. He added that the trade environment is currently quiet, with little interest from mills. “Apart from a few large mills, most are facing funding and liquidity issues, limiting their raw material purchases,” he noted.

A Chattogram-based bulk scrap trader said Bangladesh’s bids for HMS 80:20 (open origin) stood at $345/t CFR bulk, with $5/t higher for shredded and $10/t more for PNS.

Recent deals

• 1,000 t of Hong Kong-origin PNS sold at $373/t CFR
• 500 t of Malaysia-origin motor shredded booked at $350/t CFR
• 500 t of Malaysia-origin shredded sold at $365/t CFR
• 300 t of Hong Kong-origin HMS bundles (premium) booked at $345/t CFR
• 3,000 t of Malaysia-origin PNS sold at $375/t CFR

The ship recycling market in Chattogram remained subdued, with limited vessel supply and minimal port activity keeping sentiment weak. Only a few ships were available, while buyers were cautious despite prior HKC-compliant yard investments. Domestic steel prices held steady at around $520/t, though currency volatility and regional competition added pressure. Recovery is expected to be gradual, benefiting HKC-approved yards as ageing fleets arrive. Chattogram Port handled 7,809 LDT versus 14,861 LDT last week.

Outlook

Bangladesh’s ferrous scrap and steel market is likely to remain subdued in the near term amid limited mill activity and weak finished steel demand. Bulk and containerised scrap offers are expected to stay down, while a gradual recovery in ship recycling may benefit HKC-approved yards as ageing vessels arrive.