- Mills focus on cheaper scrap sourcing amid muted construction
- Traders resist higher offers amid slow finished steel movement
Bangladesh’s imported ferrous scrap market remained largely stable this week, staying active yet cautious as buyers focused on sourcing cheaper material amid subdued domestic steel demand. Bid-offer disparities increased by up to $5-8/t although some deals concluded at discounts of $3-5/t as compared to the current offer levels. Imported scrap prices, overall, inched down by $3/t w-o-w.
Premium PNS grades from Hong Kong and Singapore remain at around $395/t CFR Chattogram. However, buyers are often pushing for lower workable levels closer to $385/t, reflecting resistance to high prices.
BigMint’s weekly assessments
- European-origin HMS (80:20) prices inched down by $2/t to $354/t.
- European-origin containerised shredded was down $1/t w-o-w to $367/t.
- Japanese-origin H2 bulk prices stood at $345/t CFR Chattogram, down by $3/t w-o-w.
- US-sourced HMS (80:20) bulk prices stood at $355/t, down by $2/t w-o-w.
Recent deals:
- 1,000 t pure PNS (oversized) sold at $395/t CFR Chattogram.
- 400 t Singapore PNS sold at $395/t CFR Chattogram.
- 1,500 t Hong Kong PNS (pure H beam) sold at $398/t CFR Chattogram for end-July delivery.
Market updates
“Recent bulk sales into Bangladesh for shredded scrap from the US were concluded at around $350-352/t for August shipment. Australian shredded is being quoted higher at $370-375/t, while HMS 80:20 is hovering near $355/t. PNS offers are at $375-378/t. From the containerised market, Brazil HMS is trading at around $345/t. Premium grades like PNS from Hong Kong and Singapore are at $382-385/t, and Malaysian busheling is even firmer at $386-390/t. Japanese H2 is moving between $345-350/t, and HS scrap is quoted around $364-368/t,” said a trader.
Current price levels in Bangladesh’s scrap market reflect cautious buying and softer demand. Shredded scrap stands at $370/t CFR, while HMS 80:20 and HMS 90:10 are priced at $350/t CFR and $355/t CFR, respectively. Hong Kong PNS is offered at $385/t CFR, though buyers are pushing for lower levels of around $380/t, according to market sources.
As per a Chattogram-based trader, despite stable offers for premium material, Bangladeshi mills are increasingly seeking competitive HMS cargoes from alternative regions like Australia and Dubai. Recent offers for Australian shredded scrap have been at around $375/t CFR Chattogram.
A market participant commented, “Bulk freight from Japan to Bangladesh remains steady at $50-55/t. Japanese H2 scrap is being offered at $340-345/t CFR Chattogram, with FOB Japan values near $290/t.”
Domestic rebar update
According to market participants, rebar prices continue to decline-currently at BDT 77,000-78,000/t exw Dhaka ($629-638/t) and BDT 80,000-81,000/t exw Chattogram ($654-662/t).
Chattogram ship recycling market
HKC compliance is slowing Chattogram’s ship recycling activity, with costs rising and operations delayed. Despite weak demand and falling steel plate prices, nearly 86,000 LDT has arrived as sellers rush tonnage ahead of stricter rules. Offers below $400/t are emerging, and the market remains subdued, with a gloomy outlook for July.
Last week, Chattogram received 85,723 LDT, sharply up from 2,985 LDT previously.
Outlook
Bangladesh’s scrap market is expected to stay cautious into July, with mills seeking lower prices amid soft finished steel demand and rising costs from HKC compliance in ship recycling. While buying interest persists, significant price gains appear unlikely unless domestic steel demand improves or global scrap availability tightens. While market sentiment stays cautious due to soft finished steel demand and price pressures, buying interest continues as mills look for the best deals across origins and scrap grades.
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