Bangladesh: Imported bulk ferrous scrap prices up in recent bookings

Bangladesh’s imported scrap market witnessed mixed sentiments. The major mills were active in bulk cargo bookings at higher prices while the containerised market remained silent. Mid-sized mills continued to postpone their fresh bookings, owing to negative market sentiments.

Additionally, imported scrap prices remained higher, considering the high input cost, power cuts, and sluggish finished steel demand.

Bulk scrap offers and deals

• A major mill booked 38,000 tonnes of bulk European cargo recently. The cargo comprised 30,000 t of HMS at $418/t, 4,000 t each of bonus and shredded at $428/t CFR Chittagong, respectively, SteelMint learnt from sources.
• In another deal, around 32,000 t of US-origin cargo is heard to have been booked last weekend at slightly lower prices. The cargo comprised of HMS at $410/t, shredded at $415/t and bonus at $420/t CFR Chittagong. However, deals remained unconfirmed till the time of publishing this report.
• Fresh offers for the US-origin bulk HMS 1&2 (80:20) were at $420-425/t CFR levels. Later, the supplier withdrew offers after the recent Turkish deals at increased offers.
• Indicative offers for bulk Japanese H2 were heard at $430/t CFR levels. However, buyers are showing less interest and are waiting for the Kanto scrap export tender which is scheduled on 12 October.

Containerised scrap offers and deals

• Indicative offers for imported UK-origin shredded are at $470-475/t CFR levels, inching up $5/t w-o-w.
• On the other hand, the UK-origin HMS 1&2 (80:20) are being quoted at $450/t levels.
  A decent quantity of the UK-origin PNS has been sold at $480/t CFR Chittagong.

Domestic steel market subdued

Domestic mills are selling rebars at lower prices to maintain the cash flow. The government-funded projects are halted due to liquidity crunch.

• SteelMint assessed domestic rebars prices at BDT 85,000-88,000/t ($840-870/t) exw-Chittagong, unchanged w-o-w.
• The secondary mills in Dhaka are quoting rebars at BDT 77,000-78,000/t ($743-753/t), down by BDT 2,000/t w-o-w.

Outlook: The imported containerised scrap market is likely to remain dull as buyers are absent and trying to maintain cash flow. Meanwhile, dull finished steel demand amid unsupportive weather and limited construction activities are leading to production cuts, SteelMint observed.