In recent conversations with market participants SteelMint learned that, buying interest for imported scrap has improved this week amid stable local finish steel prices in Bangladesh. Few trade deals concluded in the market for imported scrap at downward corrected prices while restocking activities are expected to increase further post-Eid holidays.
Scrap importers have turned positive over pick up in the finish steel demand in the domestic market on approaching completion of the Ramadan festive season. Also, few Indian pig iron exporters sold considerable quantities on improving demand from Bangladesh buyers.
In recent trade deals, around 4000 MT UK origin containerized Shredded 211 scrap sold at USD 388-390/MT, CFR. In another deal, Shredded booked in the range of USD 385-387/MT, CFR Chittagong. However, buying interest stood strong at USD 380/MT levels. These deals have pulled the price assessment successively down for the second week by around USD 7-8/MT on W-o-W basis.
Price assessment for West Africa, Chile and European containerized HMS scrap remained in the range of USD 355-365/MT, CFR Chittagong depending on the quality of scrap and HMS 1&2 was being offered at around USD 365-370/MT, CFR from Brazil. P&S and HMS 1 assessed at around USD 380-385/MT, CFR from Brazil and UAE.
Bangladesh based trade sources expect imported scrap trade activities to pick up further in the coming days.
Domestic scrap prices in Bangladesh rebound at earlier levels – Local scrap prices fell slightly in the mid of last week however prices have rebounded back at earlier levels now and are reported at around BDT 36,800-37,300/MT (USD 436-442), ex-works including 15% local taxes. Domestic ship cutting plate scrap prices have also moved up by BDT 500-700/MT recently after a long vacation in Bangladesh. Prices assessed in the range of BDT 42,500-43,000/MT (USD 503-509) (Size 16 mm and 20mm) While ship cutting plates larger than 20mm size assessed at around BDT 43,500/MT (USD 515).
Local rebar prices stable on W-o-W – Offers for local rebar for medium-scale producers remain stable at around BDT 60,000-61,000/MT (USD 710-722) ex-works. Whereas large-scale producers are offering premium rebar almost stable at BDT 63,000-64,000/MT (USD 748-757) ex-works, Chittagong including 15% taxes.
Ship breaking prices increase USD 10-15/LDT W-o-W – Ship cutting prices witnessed firmer sentiments last week in Bangladesh while prices continued upward movement by USD 10-15/MT LDT on W-o-W basis. Prices assessed at USD 425-430/LDT for general dry bulk cargo, at USD 435/LDT for tanker cargo and at USD 450/LDT for containers on CNF Bangladesh basis. A VLCC heard to have sold at around USD 422/MT, CNF.
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