Bangladesh: Imported scrap offers up; steel prices yet to pick up

Imported scrap offers for Bangladesh have increased significantly by $5-10/t over a week. Due to low scrap generation in major supplying countries, primarily UK, bulk suppliers are less interested in reducing offers.

Bulk scrap offers for Bangladesh up further w-o-w – Bulk scrap offers for Bangladesh have moved up slightly by $3-5/t w-o-w. SteelMint’s assessment of bulk Japanese H2 scrap stands at $312/t CFR Chittagong, up by $5 w-o-w.

“US bulk sellers not agree at buyers’ bid price, so there seems less chance of for any US cargoes to be sold to Bangladesh at the moment as Far East Asian buyers already willing to pay $312 basis for HMS”, highlighted a global trader.

While bulk offers from US/Australia origin HMS 1&2 (80:20) scrap are around at $315-320/t CFR, however, bids were reported lower by $5/t. The disparity between bulk offers and bids have kept buyers away from the market, SteelMint has learnt from its sources.

Containerised scrap offers – Imported scrap trades to Bangladesh mostly remained absent throughout the week as compared to last week, as offers have moved up significantly due to supply crunch. On the other hand, due to dull domestic finished steel market sentiments, buyers have opted to wait and watch before placing any fresh bookings.

• SteelMint’s assessment of containerized shredded 211 scrap from UK/Europe origins stands at $330/t CFR Chittagong, up by $10 w-o-w.
• Whereas, HMS 1&2 (80:20) from different origins is being quoted at around $310-315/t CFR Chittagong level.
  
  “Rebar prices holding at similar levels in the past couple of months, and mills are finding it tough to absorb the increase in scrap prices” shared a participant from a major Bangladesh-based steel mill.

Domestic steel market overview – Domestic scrap prices have increased by another BDT 500-1000/t w-o-w. Local melting scrap prices currently stand at BDT 32,000/t ex yard basis. While, rebar prices have remained stable in the last couple of weeks and the major mills are quoting offers at BDT 56,500/t ex-Chittagong basis.