Imported scrap offers to Bangladesh remained almost stable this week, with quite limited trades witnessed this week as compared to last week. In spite of global offers to other nearby markets like Pakistan, India and SE Asia moving down recently, suppliers remained firm in their offers to Bangladesh, encouraging most buyers to look towards local scrap from shipyards, which are decreasing continuously.
SteelMint’s assessment for shredded scrap in containers from UK/ Europe stands at $290/t CFR Chittagong, against last week’s report. A Dhaka based major trader sold a 1000 t of Australian shredded at $ 290/t CFR. Most offers for shredded from UK/Europe remained around $290/t, with little interest from buyers. Additionally, Brazilian shredded was offered at $275-280/t, inching up by at least $5/t against last week.
While very less offers were reported from Australia. “This week we didn’t get any firm offers from Australian yards who are in wait and watch mode on global prices, while Bangladeshi buyers too remained mostly away from inquiring in the recent days, expecting prices to fall” Shared by a global trader.
Meanwhile, HMS scrap offers from Brazil observed a slight uptick and HMS 1&2 (80:20) was being offered at $265/t CFR and above. Meanwhile, most buyers’ bid stood at around $ 260/t CFR basis, although bookings for Brazil origin HMS were reported this week.
Domestic Market:
Local shipyard scrap prices moved down for yet another week. Shipyard scrap currently stands at around BDT 26,000-26,500/t ex Chittagong (inclusive of all taxes) against BDT 27,500-28,000/t reported last week, while the buyers are waiting for more price correction.
Due to high imported scrap offers and sharply decreased billet prices, few Dhaka based steel mills are buying local billets in small quantities at BDT 41,000/t ex plant. While steelmakers are anticipating a further price drop up to BDT 1000/t ex plant for Billet, at a time when steelmakers’ margins are already tightened.
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