- Bid-offer gap continues to restrict fresh trade activity
- Weak downstream demand limits fresh buying interest
Bangladesh’s imported ferrous scrap market slipped into a quieter phase this week, with mills stepping back just as negotiations approached closure. After active restocking in the previous weeks, buyers are now reassessing positions, leading to a noticeable drop in fresh bookings despite relatively firm offer levels.
Tradable HMS (80:20) was heard at $383-385/t CFR, with bids hovering near $380/t, while shredded scrap offers remained at $408-415/t against workable bids around $405/t. HMS 1 stood at $395/t and PNS at $425/t.
Market participants noted that while price ideas appeared workable, buyers turned cautious at the final stages, delaying deal closures.
BigMint’s weekly assessments
- European-origin containerised HMS (80:20): $390/t, inched down by $2/t w-o-w
- European-origin containerised shredded: $413/t, dropped by $4/t w-o-w
- Japanese-origin bulk H2: $395/t, up $1/t w-o-w
- US-origin bulk HMS (80:20): $404/t, up by $1/t w-o-w
A consistent $10-15/t gap between bids and offers continued to restrict frequent transactions. Only 3-4 containerised trades were heard during the week, including Australia-origin HMS (80:20) at $400/t and $390-395/t CFR Chattogram and USA-origin shredded scrap at $410/t CFR.
Regional sentiment weakens buying confidence
The slowdown was not limited to Bangladesh. Buyers across Pakistan and India exhibited similar behaviour, with negotiations losing momentum as they neared finalisation. While Bangladesh mills had largely restocked earlier, Indian buyers remained on the sidelines, adopting a wait-and-watch approach. A trader summed up the mood as “very soft”, reflecting a lack of urgency across the region.
Domestic rebar prices remained stable at BDT 88,000-90,000/t ($717-734/t) in Dhaka and BDT 91,000-94,000/t ($742-766/t) in Chattogram, offering little incentive for mills to chase higher-priced scrap cargoes.
Firm ship recycling market signals underlying support
In contrast to the subdued scrap trade, Bangladesh’s ship recycling market in Chattogram remained firm. Stable steel plate prices and a steady currency supported sentiment, while the narrowing pre-monsoon window added urgency to vessel acquisitions. The market continued to command the highest price levels in the subcontinent.
Although LC constraints eased post-Eid, facilitating smoother transactions, vessel inflows remained constrained due to tight availability and strong freight markets. Compliance scrutiny, particularly around sanctioned vessels, also remained high. As a result, despite healthy demand, actual deal conversions were limited by supply-side constraints.
Outlook
The scrap market is likely to remain cautious in the coming days, with mills continuing to need-based procurement following recent restocking. While firm global offers and a strong recycling market may provide a floor, weak regional demand and hesitant buying are expected to keep trading activity subdued.
Leave a Reply