After a gap of around two weeks, Bangladesh has resumed its bulk scrap bookings. A prominent Bangladesh-based steel mill has booked two deep-sea bulk scrap cargoes, sources have confirmed to SteelMint. With the latest bulk cargo bookings, imported bulk scrap offers have climbed further.
The 32,000 t cargo comprised a mix of HMS & Shredded scrap. Although the booking price could not be confirmed till the time of publishing this report, indications were that it was around $470-475/t CFR. However, the fresh bulk US scrap offers for HMS are heard to be around $490-500/t CFR levels.
Price indications for bulk Japanese H2 to Bangladesh remained on a higher side, and the disparity in bids and offers made the buyers cautious. Japanese suppliers were more involved in trades with China at higher prices. Chinese buyers were actively restocking ahead of Japanese Golden Week holidays.
SteelMint assessment for Japanese bulk H2 offers to Bangladesh now stands at $490/t CFR Chittagong levels.
Trades in container remained limited for another week
Imported scrap trades in containers remained nil for yet another week. Extended lockdown restrictions have kept market silent, coupled with Eid holidays which kept finished steel demand low. Labour too will go back for Eid holidays in mid-May, SteelMint learnt.
Fresh offers:
- UK/EU origin shredded is being offered at above $495-500/t CFR Chittagong levels, however, buyers have shown no interest at these levels. Notably, prices have moved up by $27 against the beginning of the month.
- Whereas, HMS 1&2 (80:20) from different origins are now being offered at $460-470/t CFR Chittagong basis
Domestic rebar prices remained steady w-o-w, sales decline: Bangladesh market continued to be slow and largely stable in the last week of April from the preceding week. Owing to lockdown extension and ongoing Ramadan, production volume has come down.
“Mills are struggling to maintain production, there is a shortage of shipyard scrap and oxygen used in the cutting of ship plates” shared a prominent market source.
- Tight availability of local shipyard scrap has pushed scrap price upwards and has spiked by BDT 1,500-2,000/t to BDT 47,500-48,000/t exy levels in Dhaka region.
- SteelMint assessment for shipyard scrap for the Chittagong region now stands at BDT 47,000/t exy levels, up by BDT 1,000/t w-o-w
- Major mills have kept rebar offers steady at BDT 71,000/t exw Chittagong levels for the entire month. Following the trend Dhaka mills are quoting at BDT 68,000-69,000/t exw, prices are largely unchanged w-o-w.
Outlook: Imported scrap trades in containers are likely to slow down ahead of Eid holidays, while prices would remain on higher side on the back of tight scrap availability.
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