- Japan, US, Australia buk offers continue to drop
- Buyers face high freights, containerised deals hit
Bangladesh’s imported scrap market remained under pressure despite a mild recovery in finished steel demand post-holiday.
The containerised scrap market also stayed weak as buyers remained cautious amid global uncertainties. Singapore-origin HMS 80:20 was offered at $375/t CFR, while bids stayed below $365/t. HMS (80:20) from the Dominican Republic was being offered at $355-360/t CFR Chattogram in 40-ft containers.
Overall, offers fell by up to $6/t across geographies.
Bulk imported scrap offers for Bangladesh continued to soften, with high-grade Japanese cargoes at $390/t CFR but which drew no interest. US bulk offers to Chattogram remained absent due to volatile Turkish prices, though previous inquiries were heard in the $370/t range.
Australian-origin bulk was preferred at $375-380/t. Chattogram mills quoted Japanese bulk workable at $360-365/t, but further drops to $360/t are likely– levels that may not be acceptable to Far East suppliers.
BigMint’s weekly assessments
- European-origin HMS (80:20) was down by $3/t w-o-w to $370/t.
- US-sourced HMS (80:20) bulk prices stood at $374/t, dropping by $6/t w-o-w.
- Japanese-origin H2 bulk prices stood at $363/t CFR Chattogram, down by $4/t w-o-w.
- European-origin containerised shredded inched down by $4/t w-o-w to $389/t.
Market comments
A Chattogram-based mill source noted, “We are focusing on bulk, mainly shredded 211 from Australia at around $380/t CFR. Domestic rebar prices remain largely stable between BDT 82,000-86,000/t ($675-707/t) exw Dhaka-Chattogram.”
Meanwhile, a Dhaka-based trader commented, “Offers for PNS from Australia, Brazil, and Hong Kong were at $390-395/t, and shredded from Australia, Malaysia, the UK, and the EU at $385-390/t are not viable due to high freight and logistical challenges.”
An Australia-based trader commented, “Shredded at $390/t and HMS 80:20 at $370/t from Australia still seem high for Chattogram buyers. We have not seen offers drop yet, though some bids are floating at around $380-384/t for shredded and $362-365/t for HMS 80:20.”
A Chattogram-based trader shared the latest levels: “Shredded from Australia/NZ was mostly being offered at $390-392/t, while bids were lagging at $385/t. HMS 90:10 from Australia was being offered at $385/t, with deals recently done at $371-372/t. Japanese rebar bundles were offered at $395/t, though recent bookings were at $390-392/t.”
Bangladesh’s forex reserves top $21 billion amid strong remittances
Bangladesh’s gross forex reserves climbed to $21.11 billion as of 13 April (IMF basis), up from $20.35 billion on 28 March, driven by strong remittance inflows and export earnings, as per industry reports. Under the central bank’s traditional method, reserves rose to $26.38 billion.
From July 2024 to March 2025, remittances surged 27.6% y-o-y to $21.77 billion. To boost forex inflows further, the central bank has allowed NRBs to open PFC and NFCD accounts in any convertible currency and lifted fixed interest rate caps, enabling banks to offer competitive, market-driven rates.
Outlook
The Bangladesh scrap market remains under pressure despite mild recovery in steel demand. High freight costs will likely hinder containerised scrap deals but bulk scrap might see some inquiries. Mills are cautious, awaiting clearer price trends. The outlook remains subdued, with price adjustments likely as global uncertainties persist.
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