- Bulk scrap offers from USA and Japan down by $10-15/t w-o-w
- Bookings continue to happen in containers at reduced prices
- Domestic steel demand turns subdued, rebar offers fall marginally
Bangladesh bulk scrap trades have slowed down over the week on global scrap price downtrend. Interestingly bulk offers for Japanese H2 have dropped significantly by $8-10, immediately after Japan’s Kanto scrap export tender concluded early in the morning. Suppliers would sell cargo as they have already held it till the tender result so next week bulk bookings would likely to happen, SteelMint learnt from channelled sources.
SteelMint’s assessment for Japanese H2 now stands at $472/t CFR Chittagong level, down by $8 w-o-w. Fresh indicative offers for Japanese H2 are being offered at $470-475/t CFR Bangladesh level, but no deals have concluded yet.
Price indications for bulk US scrap have also come down by $15 w-o-w. “Few sales have taken place for Bangladesh some days back at $495-500/t levels for USA origin bulk cargo comprised of HMS 1&2 (80:20). Current offers should be around $490/t CFR levels as bulk cargo freight rate is extremely high at the moment” shared a prominent US scrap trader.
Offers in container drops, HMS trades slow down: Containerised scrap buyers have actively booked fresh slots for March shipments for Shredded grade. The prices have dropped significantly by $10 w-o-w.
Few deals for shredded, around 3,000-4,000t, have been booked at $480/t CFR levels earlier this week. Fresh offers for shredded are being cited at $470-480/t CFR levels, however, trades have slowed down for shredded.
- Offers for HMS 1&2 (80:20) from different origins are being quoted at $460/t CFR Chittagong levels, whereas buyers are bidding at $445-450. Hence trades have remained slow.
- SteelMint assessment for local shipyard scrap prices now stands at BDT 43,500/t exy level, down by BDT 1,500/t which remained a preference over imported HMS scrap.
- Brazilian HMS 1&2 (80:20) and PNS-1,000 t each, have been sold at $450/t and $480/t CFR Chittagong basis respectively.
Indian sponge iron export demand remains moderate: Around 7,000 t of sponge iron have been booked in fresh deals reported by a couple of suppliers from Kolkata, Eastern India at $405-408/t CFR Chittagong basis. Most of the recent deals were made through the sea route as congestion period on Benapole port has increased. SteelMint’s weekly export price assessment for sponge iron stands at $410/t CFR Chittagong, following volatility in domestic offers on subdued demand.
Domestic rebar offers in Bangladesh inch down: Domestic rebar offers have witnessed a slight decline after witnessing stability for over three successive weeks. Prices have moved down by BDT 1,000-2,000/t and currently offers stand at BDT 67,000-69,000/t exw Chittagong levels. Rebar offers of smaller mills followed the trend and dropped the rebar offers by BDT 2,000/t and are currently being quoted in the range of BDT 63,000-65,000/t exw.
Outlook: Imported bulk scrap trades likely to take place now after firm market indications from today’s Kanto tender.
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