Bangladesh: Imported scrap market cools down after aggressive bulk bookings last week

With the start of Ramadan month, imported scrap market in Bangladesh slowed down. However, offers have moved up following a global scrap price hike.

As SteelMint reported last week, Bangladesh based mills had booked bulk scrap cargoes from US and Australia. Mills have booked nearly five bulk scrap cargoes from US and Australia towards the end of last week on restocking before Ramadan holidays, credible sources highlighted to SteelMint. Deal prices for concluded US bulk bookings were heard to be at $455-470/t CFR for HMS.

“Latest bulk sales into Bangladesh from USA origin HMS 1&2 (80:20) last week was done at $470/t CFR Chittagong levels. So, the market is trending upwards at the moment”, shared a prominent scrap trader.

On the other hand, fresh indicative bulk scrap offers for Japanese H2 are around at $480/t CFR Chittagong basis, registering a sharp rise of $15/t w-o-w. However, no fresh bookings were reported this week.

Containerised scrap buyers stay away from the market: Market is silent because Ramadan has started and it will take 4-5 days to adjust with the Ramadan schedule. Bangladesh and Pakistan market will be very silent this week SteelMint learnt.

• Price indications for containerised UK/EU origin shredded are being cited at $480-485/t CFR Chittagong levels, moving up significantly by $10-15/t w-o-w.
• Whereas, HMS 1&2 (80:20) from the same origin is now available at $470/t CFR Chittagong level.

Domestic rebar prices of smaller mills fall: Bangladesh market remained quiet, owing to a strict lockdown following a spike in COVID cases.

“All the offices and factories would remain closed as the government has enforced a weeklong ‘complete lockdown’ from April 14-21 in order to contain the surge of COVID-19 infections and deaths from the viral disease. Although mills and port functions are operational since finished steel sales are not taking place, buyers have turned cautious for booking imported scrap”, shared active market participants.

Currently, Dhaka-based mills have dropped rebar offers by BDT 1,000/t w-o-w due to Ramadan and National holidays. Offers are quoting in the range of BDT 66,000-67,000/t exw. However, not much revision was heard in rebar offers of major mills and they have reported around BDT 69,000-71,000/t exw Chittagong levels.