- Bulk scrap bookings yet to resume for Mar’21 shipment
- Containerised trades slow down, except Dhaka region
- Domestic rebar offers of major mills mostly stable
Bulk scrap prices to Bangladesh have moved up significantly after Japan’s Kanto tender concluded at a higher level today. However, Bangladesh-based bulk buyers remained quiet and are yet to resume fresh bulk cargo bookings for Mar’21 shipments.
Japan’s monthly Kanto Tetsugen ferrous scrap export tender for Feb’21 was concluded today. Around 15,000 t of Japanese H2 scrap was awarded at an average price of JPY 39,271/t ($375) FAS, falling by JPY 5,480/t ($52) m-o-m, SteelMint learned from its trade channels. However, bids fetched today are higher than expected, signalling a rebound in prices in near term.
SteelMint’s assessment for Japanese H2 now stands at $423/t CFR Chittagong level, up by $20 w-o-w. Fresh indicative offers for Japanese H2 is being offered at $425-430/t CFR Bangladesh level, but no deals were concluded as yet on disparity between bid and offer, SteelMint understands.
“Today’s tender was concluded at above the expected level so everyone is confused. Buyers are not showing interest in current offers” shared a Japanese scrap trader.
“Bulk US scrap was offered at $420-430/t CFR but didn’t get any interest from buyers. Bids have remained much lower than current offers hence no business has happened yet” shared a prominent trader.
Containerised imported scrap prices firm- Containerised imported scrap prices to Bangladesh mostly remained firm this week. However, trades slowed down on low finished steel market sentiments.
“Still rebar prices are not workable as compared to current imported scrap prices” a major steelmaker shared to SteelMint.
On the other hand, “Dhaka based market is positive as bookings are happening actively”, shared a Dhaka based prominent trader. “Chittagong based buyers are willing to book above $450/t, but Dhaka based buyers will stop buying if prices breach $420/t level. The market should remain stable”, he added.
- Fresh offers for shredded from different origins are being quoted at $415-425/t CFR Chittagong basis, mostly stable w-o-w
- Dhaka based steel mill has booked 5,000-6,000 t of Australia origin HMS (90:10) at $405/t CFR basis
- However, offers for HMS 1&2 (80:20) from UK are at $400-410/t CFR Chittagong levels
Domestic rebar offers of major mills mostly stable– Major mills’ kept domestic rebar prices unchanged from last two weeks at BDT 65,000/t exw. Whereas, secondary mills’ rebar prices moved up further by BDT 2,000/t and are currently being quoted in the range of BDT 59,000-61,000/t exw. Local shipyard scrap prices have risen after two weeks and currently stand at BDT 39,500/t exy level.
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