Bangladesh: Imported scrap offers rise, trades remain limited

• Imported scrap offers rise by $10-15/t w-o-w
• Market awaits for Japan’s monthly Kanto tender, which is scheduled on 13th Jan’21

Bangladesh based major mills are yet not active in bulk scrap market as no fresh bulk cargo booking was reported this week. While imported bulk offers continue to rise, US origin bulk HMS 1&2 (80:20) offers to Bangladesh are being quoted at $510-515/t CFR Chittagong level, and the buyers are bidding according to the market price.

“Bangladesh based steel mills are bidding higher prices now but still nowhere close to what US sellers can get from other markets, like Taiwan etc” highlighted a prominent USWC scrap supplier.

Due to China’s comeback in the scrap market, Bangladeshi buyers remained indecisive as the market is not clear yet and they are waiting for a price correction. Meanwhile, China has already bought some Japanese cargoes at a higher price.

The price direction may get clear after Japan’s monthly Kanto tender result which is scheduled on 13th Jan’21.

SteelMint’s assessment for bulk Japanese H2 stands at $500/t level, up by $10 over a week.

Container market overview– The UK has announced another lockdown for the next one month which may slow down the scrap generation further. This would result in a hike in imported scrap offers.

“Scarcity of scrap is there, so prices may go up further” highlighted a trader.

“We are waiting for the normalisation. We are not going to book any cargo now which offered close to $500 and market is high” shared a prominent scrap buyer in Bangladesh.

Recent deals and offers–

• Fresh offers from UK/EU origin shredded have been quoted around $485-495/t CFR Chittagong levels, up by $10-15/t w-o-w
• Around 1,500 t of Australian origin HMS 1&2 (90:10) has been sold recently at $467/t CFR level.
• Fresh offers for HMS 1&2 (80:20) different origins is being quoted at $475-480/t CFR level.
• PNS from different origins is being offered at around $490/t CFR level.

Indian sponge iron export prices remain firm - Indian sponge iron export prices have remained firm during the last two weeks and are hovering at $400-405/t CPT Benapole. Around 6,000 t of sponge iron have been booked from India this week at around $405/t CPT Benapole for end Jan- early Feb’21 shipment.

Domestic rebar prices rise further– Domestic rebar prices have increased with continuously increasing demand in the domestic market – as SteelMint estimated last week. Major steel mills are currently citing rebar offers at BDT 67,000-68,000/t exw levels, up by BDT 3,000-4,000/t w-o-w, and even targeting higher levels in coming days.