Bangladesh: Imported scrap market silent ahead of Eid holidays, subdued steel demand

Following global cues, imported scrap offers to Bangladesh have continued to move downward. Buyers remained away from making bulk scrap purchases. However, deals in containers have continued to take place.

Interestingly, offers have registered a significant drop of $60/t in the last one month, falling to over one-month lows from the beginning of March, 2022.

• Fresh offers for UK-origin shredded in containers are being offered at $615-620/t CFR levels, registering a sharp fall of around $40-45/t w-o-w.
• UK-origin HMS is being quoted at $600/t CFR levels, amid limited negotiations. Further drop is expected.
• Australia-origin HMS 1&2 (80:20) is now being offered at $620/t CFR levels, although buyers ‘price idea was $590/t CFR levels.

Mills have limited scrap inventory, but due to the subdued domestic steel market, mills have enough finished steel stock for at least the next 15 days. Hence, the imported scrap market is quiet ahead of the Eid holidays and people will get back for fresh bookings after holidays, SteelMint learnt.

Sharp drop in bulk scrap offers

The bulk scrap market was mostly quiet throughout the month. “Major mills have to book bulk cargoes as they were quiet from the last one month, while buyers expect offers to fall further for the next round of bookings,” said a reliable source.

• Price indications for Japan-origin bulk H2 are at $630/t CFR Chittagong, a significant fall of $40/t w-o-w.
• A few offers bulk US HMS were being quoted at $595/t CFR, lower by $60/t w-o-w.

Finished steel sales dip during Ramadan

The domestic rebar market is slow due to the upcoming Eid holidays. Demand for finished steel has fallen by around 45% as larege and and government projects have slowed down during this period. Meanwhile, construction materials — from raw materials to finished steel — everything is now costly.

• As per SteelMint’s assessment, major mills are offering rebar (10-16mm) at BDT 84,000-85,000/t ($971-982/t) exw Chittagong, including taxes, down BDT 500/t ($5/t). A couple of major mills are holding on to their rebar offers, waiting for a clearer direction after Eid.
• Currently, Dhaka mills are offering rebar at BDT 77,000-80,000/t ($890-924/t) exw.

Eid holidays to keep markets closed: Banks will be closed for a week because of the upcoming Eid holidays. So, it will be difficult to conclude any deals. Meanwhile, the Chittagong seaport is going to observe container as well as vessel congestion during the holidays. The 8-day holidays will start from 28 April and last till 8 May. The market will resume on 9 May, following which trade may gain momentum.