- Limited deals seen as mills exercise caution
- Domestic steel plate prices hold steady w-o-w
Bangladesh’s imported scrap prices moved within a narrow range this week, as the market remained quiet. Monsoon rains continued to disrupt construction activity and dampen steel demand. Despite multiple offers, actual deal-making remained limited, with most buyers hesitant to accept current prices.
BigMint’s weekly assessments
- European-origin HMS (80:20) prices inched down by $3/tonne (t) w-o-w to $352/t.
- European-origin containerised shredded was down $2/t w-o-w to $370/t.
- Japanese-origin H2 bulk prices stood at $340/t, stable w-o-w.
- US-sourced HMS (80:20) bulk prices stood at $351/t, unchanged w-o-w.
Market sentiment
“Only a few buyers are active right now,” said a Dhaka-based scrap trader. “Most mills are in wait-and-watch mode, delaying fresh bookings due to the ongoing monsoon, which has slowed construction activity. As a result, raw material purchases for the next production cycle are being pushed back.”
As per the latest container CFR Chattogram offers, Australian shredded was at $374-375/t, HMS 80:20 and Brazilian HMS at $345-348/t, and PNS at $380-384/t. Offers for Hong Kong/Singapore PNS stood at $385-390/t, and Malaysian busheling at $390-392/t.
In bulk, Japan H2 is being offered at $340-345/t, HS at $362-364/t, and US West Coast HMS at $350-355/t.
“Offers for HMS 90:10 from Australia and New Zealand were heard at $345-350/t CFR Chattogram, while buyer bids stayed lower at around $335/t. HMS 80:20 was offered in the $335-340/t CFR range, with limited buyer interest. Shredded from Australia was quoted at around $375/t CFR. Domestic billet prices held steady at BDT 69,000-70,000/t ($566-575/t), but sluggish rebar demand and limited project activity kept overall market sentiment weak. Local scrap was assessed at BDT 52,000-54,000/t ($427-443/t), rebar offers from Chattogram at BDT 85,000-86,000/t ($698-706/t), and Dhaka-based rebar offers at BDT 78,000-80,000/t ($640-657/t) exw,” observed a Chattogram-based scrap trader.
Recent deals
- PNS from Singapore – 1,000 t sold at $382/t CFR Chhattogram
- HMS 1 from Australia – 1,000 t sold at $341/t CFR Chhattogram
Chattogram ship recycling struggles amid monsoon
Bangladesh’s ship recycling market continued to lag behind other subcontinental players, pressured by monsoon disruptions, weak steel prices, and stricter regulatory enforcement. Despite the arrival of five vessels totalling 65,809 LDT this week, nearly unchanged from last week, overall inflows remained inconsistent.
The full implementation of the Hong Kong Convention (HKC) added friction to operations, with more rigorous inspections and documentation slowing yard activity. Meanwhile, domestic steel plate prices stagnated at around $552-553/t, making fresh imports unattractive. Combined with broader economic headwinds, Chattogram remained South Asia’s lowest-priced and least active ship-breaking hub.
Outlook
Looking ahead, some buyers expect demand to pick up modestly once the monsoon season begins to ease in the coming weeks, allowing construction activity to gradually resume.
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