In recent conversations with market participants SteelMint learned that, imported scrap market in Bangladesh has turned quiet on the uncertainty of global prices despite of slight fall in the offers. Following corrections in the global markets, Bangladesh scrap offers have come down by USD 5-10/MT now, however, buying interest remains low ahead of EID holidays and dull finish steel demand.
Shredded 211 scrap in containers from UK is being offered at around of USD 360-362/MT, CFR Chittagong. Europe origin Shredded assessed at USD 357-360/MT levels. While last week deals for Shredded scrap were concluded at USD 370-372/MT levels. P&S scrap offers assessed mostly at around USD 365/MT, CFR Chittagong.
Buyers’ bidding for Shredded scrap from UK and Europe origin mostly stand at USD 350-355/MT levels.
In line with this, HMS 1 offers from UAE and South Africa stand at USD 350-355/MT, CFR levels. HMS 1&2 (80:20) offers remain in the range of USD 340-345/MT depending on various origins like Dubai, UK and Europe. While few buyers have received offers for HMS 1&2 from West Africa and Brazil at USD 330/MT levels, down considerably as against the report last week.
“Bangladesh finish steel demand remains sluggish causing domestic steel prices to fall further especially local scrap prices have come down by BDT 700-800/MT in last one weeks’ period. Participants may wait and hold restocking activities for scrap ahead of upcoming local festival holidays in the country.” Shared a market participant.
Domestic scrap and rebar prices in Bangladesh drop upto BDT 1000/MT – Local scrap prices in Bangladesh assessed at around BDT 34,000-34,500/MT (USD 404-409), ex-works, down BDT 700-1000/MT (USD 9-12) against last report. Domestic ship cutting plate scrap prices also heard similar range of downward correction and stand at BDT 40,300-40,500/MT for below 12 mm, at BDT 41,200-41,400/MT for (16-20 mm) and at BDT 42,300-42,500/MT for size more than 20 mm thickness.
Domestic rebar offers from medium-scale producers are now assessed at around BDT 58,000-59,000/MT (USD 687-700) ex-works, Chittagong down BDT 800-1000/MT W-o-W including 15% taxes as demand for finish long steel remains sluggish in the market.
Bangladesh Ship breaking market remains subdued – Ship cutting prices assessed stable at USD 410/LDT for general dry bulk cargo, at USD 425/LDT for tanker cargo and at USD 435/LDT for containers on CNF Bangladesh basis. Although no new sale heard in this week, Bangladesh remains the most likely destination for tankers. According to reports, 3 VLCC at anchorage position in Chittagong are likely to hit the beach soon moreover, domestic yards and recyclers gear up for after vacation activities, anticipating a rally in the prices in fourth quarter.
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