Bangladesh: Imported scrap prices remain elevated due to firm buying

• Latin American and Malaysian HMS bookings support market
• High-priced EU and Japanese cargoes face buyer resistance

Bangladesh’s imported scrap market remained at elevated levels, with Brazil-origin shredded scrap booked at $400/t CFR Chattogram and HMS 90:10 at $380/t. Malaysian HMS 90:10 was also booked at $380/t, while a Philippines-origin PNS cargo traded at $378/t CFR Chattogram. UK/EU-origin shredded scrap was offered around $400/t for 20-ft containers, while HMS 80:20 was available at $370-375/t. Singapore- and Malaysia-origin cargoes were considered expensive, with buyers expecting prices around $395/t. EU sellers were asking as high as $425/t for shredded scrap, although buyers remained unwilling to accept these levels.

BigMint’s weekly assessments, CFR Chattogram

• European-origin containerised HMS 80:20: $372/t, up $2/t w-o-w
• European-origin containerised shredded: $409/t, up $1/t w-o-w
• Japanese-origin bulk H2: $393/t, up $5/t w-o-w
• US-origin bulk HMS 80:20: $399/t, up $4/t w-o-w

Market scenario

Bangladesh’s imported scrap market has remained at high levels for the past two weeks, supported by firm international buying activity. Singapore- and Malaysia-origin cargoes were considered expensive, with market participants expecting prices around the $395/t level.

Japanese H2 was indicated at JPY 49,500-50,500/t FOB, equivalent to around $390-395/t CFR Chattogram. The elevated levels of Japanese and European material have encouraged buyers to focus on competitively priced cargoes from other origins.

Recent containerised scrap trades

• 1,000 t Latin American high-grade HMS 1 at $375/t CFR Chattogram
• 2,000 t Malaysian HMS 90:10 at $380/t CFR Chattogram
• 500 t Philippines-origin PNS at $378/t CFR Chattogram
• 2,000 t Brazil-origin shredded scrap at $400/t CFR Chattogram
• 1,000 t Brazil-origin HMS 90:10 at $380/t CFR Chattogram

Domestic market

Rebar prices stood at around BDT 85,000/t ($691/t) in Dhaka and BDT 90,000-91,000/t ($732-740/t) in Chattogram. Local scrap prices were reported at BDT 55,000-58,000/t.

The relatively firm domestic scrap market has kept replacement costs elevated, although weak downstream demand continues to limit mills’ willingness to chase higher imported scrap offers. Buyers are therefore focusing on immediate requirements and comparing cargoes based on delivered economics.

Outlook

Bangladesh’s imported scrap market is expected to remain firm but selective in the coming week, supported by elevated global scrap prices and continued buying activity across key origins. Recent bookings from Latin America, Malaysia, Brazil and the Philippines indicate that mills continue to cover requirements at prevailing levels.

However, weak downstream steel demand and resistance to high-priced cargoes could limit further price gains. Competitively priced HMS and shredded cargoes are likely to attract buying interest, while Japanese, Singaporean and EU-origin material at higher levels may continue to face resistance.