Bulk scrap imports to Bangladesh in Jan’19 hit highest ever in a single month – SteelMint data.
SteelMint learned in recent conversations with industry participants that imported scrap offers to Bangladesh have maintained upward movement, however, trade activities slightly slowed down on high prices and considerable quantities booked already in the earlier weeks. Also, domestic scrap prices have turned down on improving supply in the market.
According to sources, supplier yards based in Europe, UK and Canada are quoting containerized Shredded scrap now in the range of USD 350-355/MT, CFR Chittagong. Most of the buyers are looking for USD 345-350/MT, CFR levels for Shredded scrap but hardly any major deal is being concluded amid disparity between offers and bids. SteelMint’s’ price assessment for Shredded 211 jumped by another USD 10/MT W-o-W successively for the second week as against the last report of USD 340-345/MT, CFR.
HMS scrap prices move up further – In recent deals, HMS 1 from Chile and Brazil sold in the range of USD 340-345/MT, CFR. While HMS 1&2 (80:20) from South American origins like Venezuela, Brazil and Chile assessed in containers at around USD 330-335/MT, CFR Chittagong for Mar-April delivery.
Price assessment of HMS 1&2 (80:20) from Europe and UK origin stands at around USD 330-340/MT, CFR up further USD 10/MT W-o-W.
Domestic scrap prices correct – Local scrap prices in Bangladesh turned down by BDT 500-1000/MT on a weekly comparison. Shipyard scrap prices reported in the range BDT 37,000-37,200/MT, (USD 441-443) ex-Chittagong while local melting scrap heard at around USD 35,500/MT (USD 423) inclusive of local taxes. On narrowing down the price margin between local and imported scrap, few steel mills prefer buying local scrap over imported.
Bulk scrap imports hit the all-time high in Jan’19 – Bangladesh imported 236,783 MT ferrous scrap in seven bulk vessels arrived at berth in Jan’19 observing a jump of 278% M-o-M against 62,710 MT in Dec’18. As per sources, Bangladesh based mill – BSRM actively booked bulk scrap cargoes. On the other hand, no bulk import was witnessed of pig iron and steel billets in Jan’19.
Ship cutting plate prices stand almost steady on a W-o-W basis and assessed at around BDT 41,600-41,800/MT for 16 mm and BDT 42,500-42,700/MT for above 20 mm thickness.
Sharp rise observed in no. of ships for scrapping in Jan’19 – As per the data released by a leading shipbreaking industry, ships beached for scrapping in Chittagong have hit more than a year high in Jan’19 in terms of monthly volume. Chittagong’s ship breaking gross tonnage recorded a leap of 54% against the last month and recorded at 368,651 LDT in Jan’19 against 239,354 LDT in Dec’18.
Ship breaking market observed declining sentiments on a gap between a multitude of vessels arriving and the demand from the end buyers. On the less competitive sentiments showed from India and Pakistan in terms of ship breaking imports, many smaller units continued heading towards Bangladesh benefiting even the recyclers with small L/C limits.
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