In Bangladesh, the imported ferrous scrap market remained slow in terms of fresh bookings, as there is low demand for rebar and other steel products post-Eid holidays and the scrap market, too, remains slow. Containerised shredded scrap prices from the UK and Europe improved by $6-7/tonne (t) w-o-w to $428-430/t, while HMS (80:20) offers also edged up to $410/t CFR Chattogram.
Approximately 4,500-5,000 t of containerised deals were closed over the last couple of weeks involving various grades and origins, such as Malaysia, the UK, and Australia.
BigMint’s assessment for Europe-origin shredded scrap (containers) increased by $7/t to $428/t, while HMS (80:20) containers were up by $7/t w-o-w to $410/t.
As per market participants, by June-end and July, the onset of monsoons will impact construction activities; however, shipments scheduled for May-end and early June will arrive after which bookings will fall.
BigMint’s weekly assessment for US-origin HMS (80:20) bulk scrap prices witnessed a $3/t hike w-o-w to $400/t CFR Chattogram.
Japanese H2 scrap offers were in the range of $395-398/t, while US-origin HMS (80:20) bulk indicatives ranged from $398-402/t, with buyer enquiries at around $392-393/t CFR.
A mill source said, “The imported scrap market in Bangladesh is currently in a wait-and-watch mode. BSRM booked one bulk vessel in the first week of April, but there have been no significant enquiries for bulk scrap since then.”
A representative from a major trading house observed that buyers are showing less interest in HMS UK-origin materials with higher impurities compared to West African HMS, which includes 6-10% of CI scrap.
Recent deals:
- Around 1,000 t of HMS (80:20) from the UK were booked at $410/t CFR Chattogram
- Approximately 600 t of HMS (80:20) from Australia was sold at $397/t CFR Chattogram
- Around 500 t of CR Bushelings from Malaysia were sold at $432/t CFR Chattogram
- A parcel of 250 t of NTP from Malaysia was sold at $428/t CFR Chattogram
- Around 500 of Shredded from Malaysia were booked at $420/t CFR Chattogram
Domestic market: In the local market, rebar prices stood at BDT 88,000-89,000/t (equivalent to $811-820/t) exw-Dhaka, and BDT 93,500-94,500/t (equivalent to $856-870/t) ex-Chattogram. Billets are at BDT 77,500-78,000/t (equivalent to $696-701) exw. Ship-breaking scrap prices locally are between BDT 63,500-64,400/t (equivalent to $583-592/t).
According to a steel mill representative, the government is currently focusing on cost-cutting measures, while the private sector is experiencing low demand, with no significant public projects underway. As a result, rebar prices remain subdued, hovering around BDT 94,000-94,500/t for Chattogram and BDT 88,000-89,000/t for Dhaka.
IMF’s growth outlook: The International Monetary Fund (IMF) has revised Bangladesh’s economic growth forecast to 5.7% for FY’24 in its latest World Economic Outlook. This marks the second downward revision, with the IMF projecting 6% growth in October last year. Challenges cited include high inflation, unemployment, decreased remittance flow, and lower industrial investment. This comes after the Asian Development Bank (ADB) forecasted 6.1% GDP growth, while the World Bank anticipated subdued growth at 5.6% due to reduced private consumption impacted by high inflation.
Outlook: In the short term, imported scrap prices are likely to follow the global scrap price trend, especially with the ongoing conflict between Iran and Israel, which may affect oil prices, creating problems with prompt scrap bookings from key destinations such as the UAE and UK. Bangladeshi buyers are anticipated to resume their bookings within the next two to three days, after getting a better clarity on the situation.
