Bangladesh: Imported Scrap Offers Edge Down on Limited Trades

SteelMint learned in recent conversations with industry participants that imported scrap offers to Bangladesh have slightly moved down on limited trades being reported since last week. Also, limited inquiries observed as local sentiments turned slightly down amid slow demand and considerable inventories in hand.

SteelMint’s’ price assessment for Shredded scrap edged down marginally by USD 5/MT W-o-W in the range USD 350-355/MT, CFR as against the last report of USD 355-360/MT, CFR. Limited trades for containerized Shredded sold at around USD 350/MT, CFR Chittagong.

According to sources, few scrap yards based in Europe, UK and USA are still quoting USD 355-358/MT, CFR levels for containerized Shredded. However, these levels seem quite high to achieve amid competitive semi-finish steel offers from India at the moment.

Containerized HMS 1 Chile, Brazil and South Africa traded at around USD 345/MT, CFR while HMS 1&2 from South American origins like Venezuela, Brazil and Chile assessed in containers in the range USD 340-345/MT, CFR Chittagong.

Price assessment of HMS 1&2 (80:20) from Europe, UK and USA stand at around USD 335-337/MT, CFR down USD 5/MT on W-o-W basis.

Domestic scrap prices stable on W-o-W basis – Local scrap and ship cutting plate prices in Bangladesh remained flat on a weekly comparison. Shipyard scrap selling prices are being reported in the range BDT 37,500-38,000/MT, (USD 446-452) ex-Chittagong while local HMS scrap heard stable at around BDT 35,000-35,500/MT (USD 416-422), ex-plant basis inclusive of local taxes.

Ship cutting plate prices assessed at around BDT 42,300-42,500/MT for 16 mm and BDT 43,300-43,500/MT for above 20 mm thickness. Bangladesh continues to remain the highest paying market in ship breaking on less competitive sentiments in other competing markets.

As per reports, political instability continues in the country as US congressmen urged to take action in the wake of reports of improper election rigging and voter suppression surrounding Bangladesh’s Dec’18 election. This could result in economic trouble in the near future depending on the outcome of the investigation.

Bangladesh bulk scrap imports hit the record high in Jan’19. The country imported 236,783 MT ferrous scrap in seven bulk vessels arrived at berth observing a jump of 278% M-o-M against 62,710 MT in Dec’18.