Bulk imported scrap prices to Bangladesh from Japan have dropped significantly over the week, as last week buyers were away from the market in expectation of further price correction. On the other hand, fresh offers for USA origin bulk cargoes are yet to be quoted for Mar’21 shipment, SteelMint learnt.
A Bangladesh-based major steel mill has booked Japanese bulk scrap cargo for Feb’21 shipment, credible sources have reported to SteelMint. Around 15,000 t of Japanese H2 has been booked at around $425-430/t CFR Chittagong basis. Prices have come down by $45 w-o-w.
However, fresh offers for Japanese bulk H2 cargo have further declined and are being quoted at $415-420/t CFR levels. SteelMint’s assessment for Japanese H2 now stands at $425/t CFR Chittagong level, registering a sharp drop of $35 on a weekly basis.
Containerised imported scrap trades remain slow– Containerised imported scrap prices to Bangladesh continued to dip for the second successive week. Mid-sized mills in Dhaka region are still waiting for prices to come down further. Chittagong based buyers are slowly continuing their bookings in small quantities, highlighted a Dhaka based major trader.
A major steelmaker highlighted that “We cannot survive and procure scrap at these price levels, as compared to other major mills”.
- A major steel mill has booked around 2,000 t of shredded last week at $455/t CFR Chittagong level, a reliable source has reported
- Fresh offers for shredded from different origins is being quoted at $450/t CFR Chittagong basis, down further by $10-20 as compared to last week
- HMS 1&2 (80:20) is being quoted at $435/t CFR Chittagong levels, slightly down on weekly basis
Domestic rebar prices fall– Major mills’ domestic rebar prices have inched down to BDT 65,000/t, lower by BDT 2,000/t w-o-w. Secondary mills offers are currently cited at BDT 55,000/t exw for rebar, witnessing a sharp fall of BDT 5,000/t w-o-w, some small mills are giving discounts to attract buyers, SteelMint learnt. However, local scrap prices are slightly up this week.
BSRM Steel mill to merge its parent company– BSRM Steel Mills Ltd is set to merge with its parent company BSRM Ltd. The board of directors of the group approved the merger, which will be effective from 1st Feb’21. BSRM Steel Mills is a melting unit and produces raw materials for BSRM Ltd and BSRM Ltd is to manufacture MS (mild steel) products.
Outlook– According to market insiders currently, no prices have been given either by seller or buyer, it is expected that prices will come down further. Major mills are waiting for fresh USA origin bulk offers.
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