Bangladesh’s imported scrap market is yet to pick up due to currency depreciation and lower steel demand from end-users. However, buyers continued to book small quantities as per their requirements. “Market sentiments are improving and scrap buyers are booking fresh slots for July shipments”, said a steelmaker.
- Price indications for containerised shredded are now at $535-540/t CFR, down $10/t w-o-w. Notably, imported scrap prices have fallen to around $100/t in the last one month dropping to a seven-month low.
- UK-origin HMS (80:20) is now being quoted at $525/t CFR levels, rangebound w-o-w.
Factors driving Bangladesh steel & imported scrap markets
-
- Taka depreciates further against dollar: Currently, the Taka is being traded at 87.85 against the dollar which was seen at 87.43 levels a week back.
- Mills awaiting clarity on bulk scrap offers – Bulk imported scrap buyers are observing the market closely for a clearer market picture to emerge before resuming the next round of bookings. Not many offers for bulk US scrap for July shipments were heard so far this week. No firm offers were heard for Japanese material, yet offers are still out of reach from the country’s steel mills and buyers.
- Rebar trades yet to pick up, approaching monsoons to impact sales: The currency depreciation has impacted the domestic market. As per SteelMint assessment, major mills are offering rebar (10-16mm) at BDT 85,000-86,000/t($966-978/t) exw Chittagong, including taxes, slightly up by BDT 1,000/t ($11/t). The approaching monsoon season during Jun-Sept may keep sales subdued.
.jpg)
Leave a Reply