Bangladesh’s imported scrap market remains slow amid the approaching Eid holidays. The festive holidays are likely to keep trade activities on the lower side for around a week. However, active buying in neighbouring markets like Pakistan have allowed suppliers to keep offers on the higher side.
Bulk buyers absent
Furthermore, the bulk imported market has been mostly quiet for a couple of weeks, owing to limited demand. However, mills had booked enough inventory when prices had bottomed out a week back.
While no fresh offers were made for bulk cargoes, suppliers are likely to quote fresh offers after the Eid holidays for the next round of bookings. Indications for imported US bulk HMS cargo was around $400/t last week. However, indications have increased by roughly $40-50/t this week.
Japanese suppliers are also less interested in quoting any offers to Bangladesh.
Bulk ferrous scrap imports up by over 53% m-o-m in June: Bangladesh’s bulk ferrous scrap imports have increased in June 2022 by 53% to 326,581 t compared to 213,193 t in May, as per customs data. The US was the top exporter at 160,565 t, followed by Australia and the UK at 66,767t and 45,788 t, respectively. Scrap imports witnessed a significant hike of 35% to 442,000 mnt in June 2022 as against 3,28,000 mnt in May 2022.
Meanwhile, market participants opted to wait for further price directions as prominent scrap buyers like Turkey have been mostly absent in the last couple of weeks.
Container scrap offers surge
- Fresh offers for UK-origin shredded are at $490-500/t CFR levels, moving up significantly by $30-40/t w-o-w. However, buyers and mills were silent due to high offers.
- Around 1,000 t of shredded was heard to have been booked at $480/t CFR basis middle of this week.
- HMS offers from the UK are now at $450-455/t CFR, moving up by over $10-15/t w-o-w. No major deals have been heard.
- Local ship-breaking scrap prices have up significantly this week. Fresh offers are now at BDT 50,000/t levels, rebounding by around BDT 5,000/t w-o-w.
Domestic rebar prices under pressure on dull demand
Heavy rainfall in many parts of the country has impacted domestic trade activities. Mills are under pressure to lower rebar offers further on sluggish domestic demand from end-users.
- SteelMint assesment for domestic rebar prices remained unchanged at BDT 82,000/t ($882/t) exw Chittagong levels.
- Secondary mills in the Dhaka region are quoting rebar at BDT 76,000/t ($813/t).
Furthermore, the Bangladeshi taka is largely stable after hitting a new record low a week ago, depreciating to 93.4 on the currency exchange platform recently.
Outlook: Increasing imported scrap offers may push up rebar offers. however, clear market picture may see after Eid holidays. Meanwhile, the monsoon may keep demand dull from the domestic market.
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