SteelMint learned in recent conversations with industry participants that imported scrap offers to Bangladesh have come under pressure following weak demand for scrap throughout in the Asian markets. Country’s local market remained almost unchanged and awaiting ahead of general elections in the country. After recent deferral of the election date on opposition alliance’s demand, it is now scheduled on 30th December in Bangladesh.
Offers for containerized Shredded scrap stands in the range USD 365-368/MT, CFR Chittagong which have move down by USD 10/MT as against USD 375-378/MT levels last week. However, few suppliers from Brazil and UK are still quoting it at around USD 370-373/MT, CFR.
In line with this, HMS 1 offers also moved sharply down to USD 340-345/MT, CFR Chittagong as against last week’s report. According to sources, Brazilian HMS bundles were selling at USD 315-320/MT, CFR.
For P&S scrap very limited offers are available in the market at the moment leading to firm assessment at USD 370-375/MT, CFR W-o-W.
Offers for Indian sponge iron to Bangladesh reported firm again this week on stronger Rupee against USD and assessed at around USD 365/MT, CFR Chittagong but very limited trades reported.
Bangladesh local scrap prices remained strong amid limited supply – Local scrap prices continued uptrend amid limited availability. Local HMS scrap assessed at around BDT 36,000-36,500/MT, ex-works while local ship breaking scrap prices moved to BDT 35,000-35,500/MT levels, up BDT 500-1000/MT as against last report. Prices are inclusive of taxes.
Local ship cutting plate prices remained almost unchanged for third successive week. Latest prices assessed at BDT 41,300/MT for 16 mm, at BDT 40,300/MT for 12 mm and at around BDT 42,300-42,500/MT for plate thickness 20 mm & above.
However, local finish steel market observed limited inquires again this week. Many buyers are waiting before making fresh deals on bearish outlook. Rebar prices heard hovering at range bound levels of BDT 57,000-58,000/MT, ex-works.
Ship breaking market in Bangladesh witnesses worrying signs – The assessment for ship cutting prices has come down further by USD 5-10/MT W-o-W at USD 425-430/LDT for general dry bulk cargo, at USD 435-440/LDT for tanker cargo and at USD 445-450/LDT for containers on CNF Bangladesh basis. Being the only market whose levels are holding to higher side buyers remained hesitant to offer any new units. Rumors of depreciation of Bangladeshi Taka and a shortage of USD in the country led to inability of end buyers to open new LCs.
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