- Rising energy costs result in reduced production
- Chattogram mills show limited bulk scrap buying interest
Imported ferrous scrap prices in Bangladesh declined by up to $8-10/t w-o-w as buyers remained cautious, holding off on purchases while awaiting clearer market direction. Sentiment was mixed due to cost pressures and downward adjustments in global prices.
BigMint’s weekly assessments
- European-origin containerised shredded down by $9/t w-o-w to $380/t.
- European-origin HMS (80:20) prices down by $7/t w-o-w to $363/t.
- US-sourced HMS (80:20) bulk prices stood at $369/t, dropping by $5/t w-o-w.
- Japanese-origin H2 bulk prices stood at $360/t CFR Chattogram, down by $3/t w-o-w.
Workable levels for imported HMS scrap into Bangladesh are getting nearly equal to prices of domestic pig iron and sponge iron.
As per market sources, bulk cargoes of US West Coast HMS (80:20) were sold at around $370/t CFR in the last couple of weeks, with a drop in prices mainly due to sustained pressure on deep-sea bulk scrap prices. PNS scrap from Singapore was offered at $382-385/t in the last few days, witnessing a drop of $5/t w-o-w. Japanese H2 bulk offers slipped slightly to $360-365/t CFR, down from $365/t last week.
Recent deals
- 2,000 t HMS & PNS mix prices from Brazil assessed at $372/t CFR Chattogram
- 1,000 t HMS 90:10 from Australia/New Zealand at $365/t CFR Chattogram.
- 250 t H-beams from Hong Kong at $420/t CFR Chattogram
- 1,000 t PNS from Hong Kong at $400/t CFR Chattogram
- 1,000 t PNS from Singapore at $395/t CFR Chattogram
- 500 t HMS & PNS mix from UAE at $380/t CFR Chattogram
Market updates
As per a Chattogram-based trader, current offers for ferrous scrap are as follows: Hong Kong PNS is priced between $385-390/t CFR Chattogram, while HMS 1 stands at $380/t CFR. HMS 80:20 is available at $365-370/t CFR. Shredded scrap from Australia and Malaysia is priced at $385-390/t CFR, with South Korean shredded scrap at $380/t CFR. Bundle scrap is being offered at $343/t CFR Chattogram. These offers reflect CFR Chattogram terms, with origins including Malaysia, Singapore, and South Korea.
As per a Chattogram-based mill, “Bulk inquiries remain limited, with mills indicating possible buying interest at $355-360/t CFR for US or Australian-origin HMS 80:20. Currently, bulk offers are standing at $365/t CFR for US material and $370/t CFR for Singapore-origin scrap.”
As per an Australia-based scrap trader, “The market has been quiet due to Easter Monday, with last week’s offers for HMS 80:20 in the $290-300/t FAS range. However, rising freight rates from Australia, influenced by trade tensions, may impact the near-term competitiveness of Australian scrap in the global market.”
Local scrap prices continue to remain reasonable, with prices standing at BDT 55,000-56,000/t ($454-460/t). Rebar is priced at BDT 84,000-85,000/t ($693-699/t) in Chattogram and BDT 81,000-82,000/t ($671-677/t) in Dhaka. While market sentiment remains cautious, it is stable overall. Demand remains moderate, but rising gas and electricity tariffs have raised concerns, particularly among small- and mid-sized mills, some of which have reduced production.
Outlook: The outlook for Bangladesh’s ferrous scrap market remains uncertain as buyers stay cautious amid global price fluctuations and cost pressures. Rising freight rates from Australia could add further pressure. Limited demand may keep prices under pressure in the short term.
Leave a Reply