Bangladesh-based mills were seen restocking containerised cargo in the absence of bulk bookings. Bulk Japanese H2 offers were heard at around $570-575/tonne (t), CFR Chittagong, making it barely workable for Bangladesh-based steel mills. Strong domestic demand in Japan kept suppliers active in the domestic market. SteelMint’s assessment for Japanese H2 stands at $565/t CFR , registering a sharp hike of $8/t levels w-o-w.
Meanwhile, US suppliers are still offering bulk shredded cargoes at $560/t CFR Chittagong. Bangladesh mills are now bidding $530/t CFR Chittagong. Though these bids are much higher than their previous purchase prices, there is still a disparity between offers and customers’ prices, informed a prominent market insider. Most of the suppliers have sold out their cargoes for June shipments. So the hike in prices is for July shipment, he added.
Trade-in containers continue
Global scrap prices and market sentiments are soft and buyers are waiting on the sidelines for price clarity. Currently, the steelmakers are utilising their own scrap stock as buyers are now aiming for below $500/t levels for HMS grade scrap. Increasing steel demand is likely to increase scrap purchasing.
- SteelMint’s assessment for shredded from UK stands at $540/t CFR, down by $5 w-o-w. Around 5,000-7,000 t of imported scrap has been traded early in the week at this levels.
- HMS from different origins – like Brazil, UK – are being offered at $520-530/t CFR levels.
- A trader has sold around 2,000 t of HMS from different origins at $525-535/t CFR levels early in the week.
Low demand affects Bangladesh domestic market
Bangladeshi mills are chasing scrap prices despite poor local market conditions for the second consecutive week. The market has resumed after the Eid holidays. However, the steel market has not completely opened up yet. Rebar prices have been hammered by low demand in the domestic market because of the ongoing battle with Covid-19.
Major mills kept their rebar offers stable at BDT 72,500-74,000/t exw-Chittagong, up by BDT 500/t w-o-w. However, Dhaka mills are offering at BDT 69,000-72,000/t exw but buying interest seems subdued due to lockdown restrictions. Local scrap prices have also increased after Eid.
Outlook
With the rainy season approaching in July and the ongoing lockdown restrictions, steel demand is expected to remain dull.
Leave a Reply