- Mills have started covering immediate cargo requirements
- Weak economic conditions, slow infra activity weigh on demand
Bangladesh’s imported ferrous scrap market remained cautious during the week ended 26 August, with mills focusing mainly on immediate requirements amid weak finished-steel demand. Bulk cargoes attracted relatively stronger interest, with selective inquiries emerging, while strict cargo requirements and limited availability of suitable vessels continued to constrain imports. Market activity remained subdued on Wednesday due to the Eid holiday, further limiting fresh transactions.
BigMint’s weekly assessments, CFR Chattogram
- European-origin containerised HMS 80:20: $372/t, up $6/t w-o-w
- European-origin containerised shredded: $407/t, up $8/t w-o-w
- Japanese-origin bulk H2: $378/t, up $2/t w-o-w
- US-origin bulk HMS 80:20: $381/t, stable w-o-w
Market updates
Bulk buying showed a slight improvement as mills returned for immediate requirements. However, subdued construction and infrastructure activity and weak finished-steel demand continued to limit overall scrap consumption. Japanese H2 remained less competitive against US and Australian material, keeping buyers focused on cargoes offering better price economics.
As per industry insiders, mills have started covering immediate cargo requirements, but buying remains selective. US West Coast-origin HMS 80:20 in bulk was indicated at around $378-380/t CFR Chattogram, while Australian HMS is around $380/t CFR. Japanese H2 at $384-385/t CFR was viewed as expensive, with buyers still unwilling to chase higher levels.
Containerised scrap trade remained subdued, with a wide bid-offer gap limiting fresh bookings. Australian HMS 80:20 bids were heard around $370/t CFR Chattogram, about $15/t below supplier offers, while European shredded scrap was offered at $400-410/t CFR against bids of $390-395/t CFR.
Recent deals included 1,000 t Singapore-origin PNS at $415/t CFR Chattogram, 1,000 t Philippines-origin HMS 90:10 at $375/t CFR, and a further 2,500 t of Philippines HMS 90:10 at $378/t CFR Chattogram.
According to a Dhaka-based trader, suitable cargo availability remained limited as buyers continued to avoid large-volume purchases. Strict cargo requirements for material from Singapore, Hong Kong, Malaysia, and Japan further constrained sourcing options.
Domestic market
Weak economic conditions and sluggish infrastructure activity continued to weigh on Bangladesh’s long-steel market. Monsoon rains further slowed construction, keeping mills cautious about restocking imported scrap and focused on immediate requirements.
Domestic scrap prices firmed to around BDT 51,000-54,000/t ($415-440/t), while rebar was reported at BDT 84,000-86,000/t (684-700/t) in Dhaka and around BDT 89,000-91,000/t ($725-741/t) in Chattogram. Higher domestic scrap values, combined with weak finished steel demand, kept mills focused on controlling raw-material costs.
Outlook
Bangladesh’s imported scrap market is not showing aggressive buying, although some mills are actively looking for bulk cargoes to cover immediate requirements. Buyers are likely to test mid-range levels against firm bulk offers from US and Japanese suppliers, while weak finished-steel demand continues to limit broader purchasing interest.
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