Market participants in conversation with SteelMint shared that imported ferrous scrap market in Bangladesh has slowed down reflecting the dull scenario of major markets. Following drop in global scrap prices, imported scrap offers to Bangladesh have also witnessed corrections.
Price assessment for Shredded scrap (ISRI 211) in containers has come down by USD 15/MT this week to USD 345/MT, CFR Chittagong against USD 360/MT last week.
Shredded scrap offers from Europe were heard at USD 335/MT, CFR Chittagong.
Current assessment for HMS 1 for Dubai origin scrap in containers is at USD 335-337/MT, CFR Chittagong. Bangladesh based trade sources highlighted that some bookings for HMS 1 have taken place at USD 335/MT, CFR.
“Scrap importers based in Bangladesh are out of market this week. Market is quite slow and seemed following the trends in other major importing countries. Buyers will be back into the market from next week but they may probably resume bulk bookings only after a month as there is a port congestion issue with bulk vessels.”– shared a Bangladesh based market source.
It seems that buyers are still in ‘wait & watch mode’ and are likely to return to the market next week.It is anticipated that offers may observe further correction in the coming days.
As per customs data, Bangladesh had almost doubled its ferrous scrap imports to 41,600 MT in Aug’17 against 20,050 MT imports in Jul’17. During Jan-Aug’17, country has imported 0.48 MnT ferrous scrap up 7% against 0.45 MnT ferrous scrap imports during the same time frame in CY16.
Presently, Bangladesh is aiming to become self-sufficient in billet production as several large steel mills in country initiated with investing huge in billet manufacturing. Bangladesh is planning to produce premium quality billet domestically in order to get control over raw materials, to fight against fluctuating import prices and to cut import dependency.
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