- Weak rebar demand weighs on buying sentiment
- Participants await clarity on workable price levels
Imported scrap activity in Bangladesh remained subdued, with market participants highlighting continued difficulty in concluding fresh trades. Buyers and sellers remained apart by around $10-12/t, with negotiations impacted by limited price transparency and lack of trust over workable levels.
Despite this, a few transactions were reported, including a 1,000 t Australia-origin PNS cargo at $400/t CFR Chattogram and another 1,000 t Hong Kong-origin PNS deal at $425/t CFR, indicating selective buying at lower levels.
BigMint’s weekly assessments
- European-origin containerised HMS (80:20): $392/t, stable w-o-w
- European-origin containerised shredded: $417/t, inched down $1/t w-o-w
- Japanese-origin bulk H2: $394/t, up $1/t w-o-w
- US-origin bulk HMS (80:20): $403/t, up by $3/t w-o-w
Market Commentary
Offer levels remained firm across key origins. Australia and New Zealand-origin HMS 1 was heard at $398-400/t CFR, while shredded scrap was offered around $420/t. Meanwhile, Singapore/Malaysia-origin PNS offers were higher at $430-440/t CFR. However, buyers continued to target lower levels at $390-392/t for HMS and around $410/t for shredded, keeping trading activity largely muted. “Customers remain largely silent, and negotiations are slow,” a US-based trader said.
A Dhaka-based mill source reported rebar prices at BDT 89,000-90,000/t ($724-732/t) in Dhaka and BDT 91,000-95,000/t ($740-773/t) in Chattogram, while local scrap was heard at BDT 60,000-62,000/t ($488-504/t). Rebar prices declined slightly by BDT 500-1,000/t amid weak demand and slower sales. “We have not booked any major imported cargo recently and are closely monitoring global market conditions,” the source added.
Another trader noted that offers for Australia and Hong Kong-origin PNS were around $425/t, while shredded was workable at $410-415/t. An Australia-based supplier echoed similar sentiment, stating, “We offered PNS at $436/t, but there was no interest-best bids are around $425/t, while shredded workable levels are $415-418/t.”
Bangladesh’s ship recycling market strengthened, supported by higher steel plate prices ($578/t) and a stable currency, maintaining its competitiveness in the sub-continent. Improved LC approvals post-Eid eased transaction flows, although compliance checks on sanctioned vessels limited some tonnage inflows.
Inflation eased slightly, supporting financing conditions. With the monsoon season approaching, recyclers are showing urgency to secure vessels, keeping market activity largely supply-driven in the near term.
Outlook
The market is expected to remain cautious in coming days as BigMint understands, with weak demand, limited buying interest, and a persistent bid-offer gap continuing to delay transactions, despite underlying willingness among participants to trade.
Leave a Reply