Bangladesh: Imported scrap prices ease w-o-w amid thin bookings

• Weak sentiment to cap scrap buying in near term
• Construction lull keeps mills on sidelines, weighing on scrap trade

Bangladesh’s imported scrap market has remained subdued over the last seven days, as persistent heavy rains continue to disrupt construction activity and dampen finished steel demand.

Mills maintained a cautious stance, refraining from large-scale bookings while closely monitoring end-user demand trends.

Market sentiment stayed weak, with most participants adopting a wait-and-watch approach.

Fresh offers in the market included HMS 80:20 from Australia/New Zealand at $346/t CFR, shredded scrap from Australia at $370-374/t CFR, PNS at $372/t CFR, hollow bundles at $350/t CFR, Dubai-origin HMS 90:10 at $355/t CFR, Hong Kong PNS at $385/t CFR, and busheling from Malaysia at $390/t CFR.

Recent deals

• 2,000 t Australia-origin HMS 80:20 at $346/t CFR Chattogram
• 500 t Australia/New Zealand shredded at $370/t CFR Chattogram
• 500 t Singapore-origin shredded booked at $365-370/t CFR Chattogram

Domestic market

Local scrap was assessed at around BDT 47,000-49,000/t ($387-403/t) ex-yards. Billet levels stood near BDT 65,000/t ($535/t). In rebar, Chattogram mills offered at BDT 78,000-80,000/t ($642-658/t), while Dhaka mills ranged between BDT 74,000-76,000/t ($609-626/t).

However, some lower-priced rebar around BDT 74,000/t ($609/t) raised quality concerns, keeping buyers selective.

Bangladesh ship recycling weakens on low demand

Bangladesh’s ship recycling market stayed weak amid sluggish demand, excess inventories, and cheaper imported steel. Local plate prices dropped by $9/t to $540/t, as mills continued to prefer imports over recycled material.

Still, activity improved with five vessels totalling 51,639 LDT beached at Chattogram, up from 30,225 LDT last week, including a 21,000 LDT bulker. Buyers raised bids to secure tonnage against competition from India and Pakistan, where higher prices kept attracting more vessels.

Outlook
Imported scrap prices are likely to remain under pressure in the near term as weak sentiment persists. Mills are expected to stay cautious, holding back purchases until construction activity picks up and finished steel demand shows clear signs of recovery.