- Japanese and US-origin offers unworkable for most buyers
- Bangladeshi mill wins July’s Kanto tender for 15,000 t H2 at $284/t
Bangladesh’s imported scrap market remained under pressure this week, with persistent monsoon rains and sluggish construction demand weighing on trading sentiment. Bulk HMS 80:20 offers stood at $350-355/t CFR, and Japanese H2 was quoted at $345-350/t, but buyers stayed cautious.
Inquiries for Singapore-origin PNS were heard at $380-385/t CFR, though most bids hovered lower, keeping activity limited.
Japan’s July Kanto scrap export tender saw a m-o-m decline of JPY 551/t ($4/t), with a 15,000-t H2 lot awarded to a Chattogram-based mill at JPY 41,716/t ($284/t) FAS, down from JPY 42,267/t ($291/t) in June. The estimated FOB price of $293/t translates to around $345/t CFR Chattogram, aligning with current bulk offers in the $340-345/t range.
BigMint’s weekly assessments
- European-origin HMS (80:20) prices are stable at $354/t.
- European-origin containerised shredded was up by $3/t w-o-w to $370/t.
- Japanese-origin H2 bulk prices stood at $343/t CFR Chattogram, down by $2/t w-o-w.
- US-sourced HMS (80:20) bulk prices stood at $349/t, down by $6/t w-o-w.
Despite muted sentiment, a few containerised deals were concluded in the imported scrap market over recent days.
- 1,000 t of Australian/New Zealand HMS 90:10 sold at $360/t CFR Chattogram
- 250 t of Philippines-origin GI bundles concluded at $330/t CFR
- 1,000 t of Australian Shredded booked at $370/t CFR Chattogram
Market sentiment
“Containerised scrap offers remain on the higher side at the moment,” shared an Australia-based scrap supplier. “We’re quoting HMS at around $345-350/t CFR and shredded at $370-374/t CFR. Singapore PNS is being offered at $385-390/t CFR, though we hear buyers are only considering below $380-384/t. Freight for 20-foot containers out of Malaysia and Australia is still hovering between $1,250 and 1,320.”
“US West Coast HMS offers are around $340-345/t CFR for August shipments, while Japanese H2 is being quoted at $345-348/t CFR. But buyers are mostly targeting $340/t levels. Bulk freight from the US West Coast to Bangladesh is currently in the range of $48-52/t,” noted a bulk scrap trader.
Domestic steel market quiet
“Rebar is trading at BDT 79,000-80,000/t ($648-656/t) in Dhaka and BDT 84,000-86,000/t ($690-705/t) in Chattogram, but demand remains sluggish due to stalled construction, a weak vehicle sector, and ongoing political instability,” said a construction market insider.
“Mills are cautious, booking smaller lots. Bulk purchase interest is slow amid monsoon disruptions. Listed rebar from Chattogram mills is at BDT 87,000-89,000/t ($713-729/t), but workable prices are around BDT 85,000-86,000/t ($697-705/t) with dealer incentives,” noted a rebar trader.
Monsoon hits ship recycling
Bangladesh’s ship recycling slowed as only 12 HKC-certified yards operated amid poor demand. Monsoon rains, stalled projects, and cheaper imports ($330/t) curbed sales, despite one Handymax bulker sold at $390/LDT. Chattogram arrivals dropped to 43,532 LDT from 85,723 LDT w-o-w.
Outlook
Bangladesh’s scrap demand may stay weak amid monsoon disruptions, soft construction activity, and cautious mill buying. Recovery hinges on a post-monsoon infrastructure push and currency stability.
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