- Monsoon slowing down construction, scrap demand
- Price adjustments likely if dull steel trend sustains
The imported ferrous scrap market in Bangladesh remained slow this week, with limited buying interest amid the onset of the rainy season and weak demand from the construction sector. Scrap demand in Bangladesh remains weak as the monsoon slows construction activity, though there are no issues with LC openings.
Although some trades were reported, market activity mostly remained subdued due to cautious sentiment and a lack of active buyers.
Recent containerised deals include 1,000-t Singapore/Malaysia PNS at $384/t, 1,000 t of Hong Kong PNS at $397/t, 100 t of Hong Kong-origin pure H-beam at $415/t, and 500 t of Singapore PNS at $390/t CFR Chattogram.
Overall, prices inched up by up to $2/tonne.
BigMint’s weekly assessments
- European-origin HMS (80:20) prices inched up w-o-w to $361/t.
- European-origin containerised shredded increased by $2/t w-o-w to $378/t.
- Japanese-origin H2 bulk prices stood at $359/t CFR Chattogram, up by $2/t w-o-w
- US-sourced HMS (80:20) bulk prices stood at $372/t stable w-o-w.
Market commentary
As per market insiders, Bangladesh’s steel market remains subdued, with limited buyer participation amid the ongoing uncertainty, while persistent LC-related issues continue to hamper trade activity and weigh on overall market sentiments.
An Australia-based scrap supplier informed, “Shredded scrap is being offered at $375–380/t CFR Chattogram. Freight advantage makes Bangladesh more attractive, with container rates at $1,450/t, compared to $1,650/t for India.”
Singapore-origin HMS (80:20) bulk was offered at $365/t CFR Chattogram, with bids at around $360/t. Shredded containerised was last heard at $375-378/t, while HMS 1 was at $360-364/t CFR. One bulk Japanese cargo (10,000 t) was sold for August delivery –shindachi at $375-380/t and HMS at $350/t. Australian H2 was offered at $330–340/t, but drew no counter bids.
According to market sources, the Kanto scrap export tender fetched by a Chattogram-based mill reportedly secured the winning lot via a Japanese trading firm, translating to an estimated FOB price of $300/t, while the CFR price is suggested to be around $350-355/t.
Outlook
The Bangladeshi scrap market is likely to remain subdued amid weak construction activity, and cautious steel demand. Buyers are expected to stay on the sidelines, restricting trade volumes. Unless there is a clear uptick in domestic steel offtake, suppliers may need to adjust prices to stimulate interest.
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