Bangladesh: Imported scrap prices inch up, few deals reported

Imported scrap prices to Bangladesh inched up further this week, with a few deals in containers getting reported for Shredded as well as HMS. Although demand from buyers remains slow on low production levels, trade activities continued at pace, with mills booking for their August consumption as per requirement.

SteelMint’s assessment for Shredded 211 scrap, remains at around USD 300/MT, while offers stand widely range-bound at around USD 295-303/MT CFR Chittogong. Few deals for Shredded were concluded at around USD 300/MT CFR, with most offers standing at around this level, with some offers still being observed at USD 295/MT, while premium yards were heard offering above USD 300/MT + too.

Bulk offers witnessed a strong uptrend, with Shredded via bulk being observed at USD 300/MT, as per global suppliers and major bulk buyers in the country. Buyers’ inquiries for bulk are present, while fresh bulk deals are yet to conclude.

HMS offers observed slight upward movement, after strong increase last week. HMS 1&2 (80:20) offers now stands in the range of USD 266-268/MT from UK and South America to USD 274-275/MT CFR from Australian/NZ origins. HMS 1 offers stand close to around USD 290/MT level, in line with good and improved demand from other markets in the region.

“We concluded a few cargoes of Shredded at around USD 300/MT level and sold Australian HMS ar around USD 275/MT level, while apart from a few deals, demand is low on an overall basis ” shared a major trader based in Chittagong.

In the domestic steel industry, medium and smaller mills have now mostly achieved above 60-65% + production level on gradually improving demand, while larger steelmakers still lag behind 40% or lower production level. Upcoming monsoon season will again hinder the construction activities and consequently.

On the other hand, local shipyard scrap prices are expected to fall in the coming days, on fresh booking of scrapped vessels at sharply reduced price levels (USD 280-290/MT CFR). Shipyard scrap prices in Chittagong were hovering around BDT 29,000/MT ex Chittagong inclusive of all taxes, which may fall by BDT 2000-3000/MT this month, as per reliable sources.