SteelMint learnt that Bangladesh based mills have become active in bulk scrap imports. According to sources, 4-5 bulks vessels have been booked in last few days from Europe and Japan. These cargoes are expected to arrive in June end or July first week.
Bangladesh buyers did not book cargoes in the month of May and April due to weak steel demand and high fluctuation on local currency against USD.
” We have heard 4-5 bulk vessels being booked by large steel mills in Bangladesh at a price level of USD 295-305/MT CFR Chittagong for shredded scrap from Japan and Europe”said a trader based in Bangladesh.
Containerized scrap offers for same grade are at USD 315-320/MT CFR although buying interest is at around USD 307-310/MT CFR Chittagong. PNS scrap offers are at USD 310-315/MT CFR Chittagong and HMS 1&2 at around USD 285/MT CFR Chittagong.
Local traders believe that scrap imports will increase after the federal budget as government has withdrawn SAFTA benefits on imports of sponge iron and ingots from India.
Bangladesh is emerging as one of the largest importer of scrap in Asian region. Country imported around 2.2 MnT in 2016 against 1.5 MnT in 2015.
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