Bangladesh: Container scrap trade continues, rebar sales slow down amid Ramadan

Bangladesh imported scrap trade has slowed down as the holy month of Ramadan begins. However, mills continued to book imported scrap in small quantities owing to high offers in order to meet urgent needs. Steelmakers and buyers have opted to wait and watch for a clear direction.

• Fresh offers for containerised shredded scrap cargo are being quoted at $680-685/t CFR levels, unchanged w-o-w.
• UK-origin HMS is being offered at $650-655/t CFR Chittagong levels. A small quantity of the low quality material has been booked at $645-650/t CFR levels as offers for pure material are still high.

“Mills are loooking to replenish stock but scrap prices are too high, so buyers are reluctant and only urgent buying is happening”, said a reliable source. The traditional slow month of Ramadan kept buyers cautious, owing to limited working hours and liquidity issues, SteelMint understands.

Bulk scrap bookings likely to resume

As bulk freight rates have come down slightly, major mills are likely to resume bulk booking shortly. Bulk offers for shredded deep-sea cargo are quoted at around $675/t CFR Chittagong levels.

Furthermore, major mills are showing interest towards Japanese material as the national currency (JPY) has weakened against the dollar. Also, Japan’s monthly Kanto Tetsugen ferrous scrap export tender has been scheduled for 12 Apr’22, sources informed SteelMint. This is likely to give a better clarity on Japanese scrap export prices in the short-term.

Bulk ferrous scrap imports jump over two-fold in Mar’22

Bangladesh’s total ferrous scrap imports stood at 0.64 mnt in Mar’22. Bulk scrap imports jumped 116% to 0.41 mnt in March against 0.22 mnt a month ago, as per data maintained with SteelMint. The country’s bulk imports significantly rose by 156% on a yearly basis from 0.16 mnt in the same period last year. A noticeable shift towards bulk ferrous scrap procurement was observed over containerised shipments.

Leading Bangladeshi steel mills have increased their capacities lately and scaled up imports of bulk cargoes as the quality of scrap being exported in bulk is reliable. Additionally, the container problem shortage is extending the time of containers and delivery is taking place after 2-3 months.

Subdued demand weighs on rebar sales

Major mills like BSRM, GPH, KSRM etc have kept their rebar offers firm. However, workable price indications are heard lower this week. SteelMint’s assessment for rebar stands at BDT 88,000/t ($1,021/t) exw, lower by BDT 1,000/t w-o-w. Dhaka-based steel mills followed the cue and kept rebar prices at BDT 80,000-83,000/t exw ($928-963/t). High material costs and slow construction activities have continued to weigh on rebar trade.