Bangladesh: High freights, wide bid-offer gaps keep scrap buyers cautious

• Weak downstream demand keeps mills selective
• LC constraints support preference for domestic scrap

Bangladesh’s imported ferrous scrap market remained firm but cautious, with rising global freight costs making mills more watchful before committing to large volumes, while limited cargo availability from Australia continued to support seller expectations.

BigMint’s weekly assessments, CFR Chattogram

• European-origin containerised HMS 80:20: $375/t, up $3/t w-o-w
• European-origin containerised shredded: $416/t, up $9/t w-o-w
• Japanese-origin bulk H2: $385/t, up $7/t w-o-w
• US-origin bulk HMS 80:20: $391/t, rising by $10/t w-o-w

A Dhaka-based participant said the latest US West Coast offer was around $390-395/t CFR Chattogram, but buying interest remained weak. Major buyers, including Chattogram-based mills, were making inquiries, although no suitable transaction had emerged at prevailing levels.

Another market insider from Europe said higher freights are making mills cautious, particularly on large-volume purchases. Buyers are comparing replacement costs with finished-steel demand before committing to fresh cargoes.

Recent trades included 6,000 t PNS at $405/t CFR Chattogram from Malaysia and Singapore-origin PNS at $413/t CFR. A 1,000 t Trinidad and Tobago HMS 80:20 cargo was reported at $350/t CFR, with the competitive price supported by lower freight using returning empty 40-ft containers from the US. A 1,000 t Philippines-origin GI bundles cargo was also reported at $325/t CFR.

Australian busheling was offered at $418/t CFR, compared with buyer interest at $405/t for 500 t. Other indications included UK shredded at $410/t, UK HMS at $370/t, Australian HMS 80:20 at $380-385/t against bids of $370-375/t, and Australian shredded at $400-405/t against bids of $390-395/t CFR. Brazil HMS 80:20 was indicated at around $360/t CFR.

A Japanese scrap trader said H2 offers were above $385/t CFR Chattogram. However, market participants expect some downward pressure as Japanese domestic mills continue to maintain relatively low scrap buying prices.

Domestic market

LC constraints continued to limit imports for some mills, prompting greater reliance on domestic scrap. Local scrap was around BDT 51,000-55,000/t ($416-449/t), while rebar prices stood at BDT 80,000-84,000/t ($653-686/t) in Dhaka and BDT 87,000-90,000/t ($710-735/t) in Chattogram.

With downstream demand remaining weak, mills continued to focus on immediate requirements and cost-effective raw-material procurement. The return of US West Coast cargoes at comparatively lower prices provided an alternative to higher-priced Japanese and Singaporean material

Outlook

Bangladesh’s imported scrap market is expected to remain cautious in the coming days. US bulk offers are likely to remain supported around current levels, but weak buying interest and rising freight costs could limit large-volume transactions. Japanese H2 may face downward pressure, while competitively priced cargoes from alternative origins could attract selective buying.