Bangladesh Buyers looks active in Scrap Buying during SteelMint Event

The Emerging Bangladesh – Outcome of SteelMint conference on Coal, Steel & Raw Material was organized on 14th and 15th Nov’16 in Dhaka, Bangladesh.

The 2-day international ConfEx (Conference cum Exhibition) was attended by major Bangladesh manufacturers, raw material and technology suppliers from all over the world with the objective to network with steel, cement and power producers & traders in Bangladesh.

Discussion and exchange of ideas had highlighted the conference like “ Will Bangladesh accept high scarp prices against the low domestic steel prices demand” ?

According to Aameir AliHussain, MD, BSRM “Whatever the global price trend, Bangladesh has to buy the scarp even though there is a low domestic demand of steel and high input cost will be pass on to clients”

Also there was discussion – What will be the future of Bangladesh Steel Industry?

To this Mr.V.R.Sharma, Group CEO, Abul KhairGroup said that “Bangladesh has multiplied its present capacity from 2 million ton to 3.5 Million ton to meet the growing demand in country (Present per capita consumption is below 50kg)”.

Manwar Hussain, MD, Anwar Group also added that ‘ the investors are invited not only to supply raw material for the steel plant but also opportunities are opened to get JV with local partners to set up plant to meet the growing demand’.

During the Conference Several deals were Concluded

SteelMint during the interaction session understood that buyers were active in getting quote and also booking scrap in their meeting lounge. Few deals were heard and concluded – An indenter has booked mixed cargo 10,000MT, HMS 80:20 & shredded scarp at USD 270 -272/MT and USD 290 – 292/MT respectively CIF Chittagong port.

Another Scarp Trader has booked 8,000 MT Shredded scrap with the end buyer at USD 288 – 291/MT CIF Chittagong port.

One more Indenter has booked with Dhaka manufacturer 2,500MT of mixed cargo HMS & Shredded at USD 275/MT&USD 292/MT respectively.

Scrap Prices unlikely to Crash –
Bangladesh buyers were curious, if global prices will sustain at these levels. Most of the scrap suppliers are in the opinion that prices are unlikely to crash as scrap yards are booked for December delivery. Also looking at rising coking coal prices, there are very thin chances that prices may correct sharply. But at the same time there is resistance at these levels.

Also as per SteelMint analysis the buyers were active and were looking for sellers offer.

Around 250 plus International and 60 plus local delegates had attended the two day conference.

The conference attendees had discussed and networked during the two day conferences as Bangladesh continues to be one of Asia’s most emerging markets in Steel, Cement & Power sector with growing need for technologies and raw materials such as Coal, Billet, Scrap, Sponge/HBI, Pig iron & HRC.