In conversation with market participants, SteelMint learned that imported scrap offers to Bangladesh moved down, in line with the current global slowdown as well as low interest from domestic buyers. Trades remained minimal with the upcoming Eid holidays keeping demand low, while the domestic market is likely to remain away from any significant changes until returning from holidays in mid-August.
SteelMint’s assessment for containerized Shredded scrap from UK, Europe and USA stands range-bound at USD 318-323/MT, CFR Chittagong dropping by USD 5-7/MT in comparison to the last week, with only limited trades being reported to conclude at this price range. A leading India based trader was offering European Shredded scrap at USD 323-325/MT, CFR, however lower buying interest and no immediate restocking necessities kept most steelmakers away from purchasing activity.
Reportedly, 2 bulk vessels with a total of 18,000 MT from Japan are scheduled to arrive at Chittagong in the next one week, which were booked last month by one of the leading steelmakers based in Chittagong. As per sources, one of the cargos was booked at around USD 362/MT, CFR for 10,000 MT of high quality Shin Daichi Japanese scrap. Fresh bids for Bulk vessels have been placed at USD 325/MT for shredded, by leading manufacturers .
Few trades for containerized HMS were reported, including a Dhaka based steelmaker booking 1000 MT of African origin HMS 1 at USD 310/MT, while another booking of 2500 MT for mixed grades, consisting of 1500 MT of HMS 1 and 1000 MT of P&S
HMS 1&2 is being offered at USD 305-310/MT, CFR Chittagong this week, amid lack of major bids from buyer’s end, while on an overall basis trades remained limited. Few offers of P&S scrap in limited quantity were heard at around USD 320/MT.
Domestic scrap continue downtrend, finished steel market to pick up after Eid – Local ship-breaking scrap market has witnessed a sharp downtrend over the last one month, as prices have fallen by more than BDT 3000/MT within a span of 3-4 weeks, due to a continued oversupply situation in the market. Offers for shipyard scrap currently hovering in the range of BDT 32,500-33,500/MT (USD 391-407), falling by BDT 1000/MT on a weekly basis.
The impact of advance tax imposition on raw materials has not yet majorly reflected in the finished steel prices, as low demand in the domestic market has kept steel mills under pressure. Any major changes in the prices is likely to be observed only after 15th August, with local market closing for Eid operations from later this week.
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