- Market may see limited bookings until year-end
- Liquidity shortfalls continue; rebar prices decline
Bangladesh’s imported scrap prices remained largely stable w-o-w. The market stayed under pressure, with mills struggling amid weak construction activity and persistent liquidity challenges. Participants noted no signs of recovery, as demand for finished steel products continued to lag.
Market comments
As per a Chattogram-based trader, a recent bulk cargo of HMS from an Australian scrap supplier was reportedly sold to a leading Bangladeshi mill at around $340-345/t CFR Chattogram, likely concluded within the past 10 days, marking $345/t CFR as the current workable level. Additionally, around 3,000 t of Malaysia-origin busheling bundles were sold at $370/t CFR Chattogram.
Bulk HMS (80:20) from the US was heard at $348-352/t CFR, while Japanese H2 stood at $340-342/t CFR.
BigMint’s weekly assessments
- European-origin HMS (80:20) prices slipped by $4/t w-o-w to $341/t.
- European-origin containerised shredded eased by $1/t w-o-w to $364/t.
- Japanese-origin H2 bulk prices remained stable w-o-w at $341/t.
- US-origin HMS (80:20) bulk prices dipped slightly by $1/t w-o-w to $351/t.
As per an Australian yard-side source, Australian HMS hovered near $345/t, shredded at $365/t, and PNS at $365-370/t. Offers from Australia/New Zealand remained limited. Hong Kong-origin PNS was last heard at $364-368/t, while South American HMS 70:30 stood at $330-335/t CFR.
A rare US West Coast vessel movement to Turkiye
In a recent development, a US exporter from the Pacific Northwest has reportedly sold a 50,000-t mixed ferrous cargo — comprising HMS (90:10) and shredded — to a Turkish mill for December delivery, priced around $350/t and $370/t CFR, respectively.
This rare deal — the first in nearly four years — saw a US West Coast bulk cargo diverted to Turkiye instead of its usual South or Southeast Asian destinations such as India, Bangladesh, or Vietnam. The sale stood out amid the slowest months for West Coast exporters, marked by weak Asian demand and limited shipments.
Domestic update
A leading Bangladeshi producer reportedly faced raw material shortages after a bulk vessel from the US — initially expected this week — was delayed. Rebar prices were reduced by some of the major mills by about BDT 1,200/t ($10/t) amid subdued demand and rising competition.
As per market insiders, local scrap prices in Dhaka were assessed at BDT 52,000-53,000/t ($426-434/t), while rebar traded at around BDT 74,000/t ($606/t) in Dhaka and BDT 78,000/t ($639/t) in Chattogram. Billet prices in Chattogram were heard between BDT 60,000-62,000/t ($492-508/t).
Outlook
The market is expected to remain sluggish in the short term amid weak steel demand, tight liquidity, and delayed construction recovery. Mills are likely to stay cautious, with limited bookings until the year-end. Stable to slightly softer scrap prices are expected unless regional demand picks up or freight costs change significantly.
Leave a Reply