Bangladesh: Imported Scrap Prices Move Down in Recent Trades Reported

SteelMint learned in recent conversations with industry participants that imported scrap market in Bangladesh observed few trades at further corrected prices. On improving sentiments in the local market, finished steel prices have increased in the country.

In recent trades reported, containerized Shredded 211 scrap traded in the range USD 325-330/MT, CFR from US, UK and Europe. SteelMints’ price assessment has moved down USD 10-12/MT as against the last weeks’ report at around USD 340/MT on falling global prices.

Shredded 211 scrap from a leading recycler in Australia is being offered in the range USD 328-330/MT, CFR Chittagong. While last week, South African origin Shredded was booked at around USD 340/MT, CFR.

In line with this, HMS 1 from Chile and Brazil is now being offered in the range USD 320-325/MT, CFR. Limited quantity trades reported at these levels.

An assessment of HMS 1&2 (80:20) from Europe/UK origin stands at around USD 320/MT, CFR however very limited offers for P&S scrap heard at around USD 340-345/MT, CFR from Brazil and South America.

Local HMS scrap prices stand in the range BDT 35,500-36,000/MT, (USD 423-429) ex-works inclusive of local taxes. Ship cutting plate prices increased by BDT 1,000-1,200/MT W-o-W and assessed at around BDT 42,300-42,500/MT for 16 mm and BDT 43,300/MT for 20 mm.

Indian sponge iron export offers to Bangladesh slightly moved down due to currency appreciation and the prices hovering at USD 340-345/MT, CFR Chittagong amid falling prices in the domestic market.

Bulk scrap imports up 4% Y-o-Y in 2018 – According to port data maintained with SteelMint, Bangladesh imported 1,077,024 MT bulk ferrous scrap during 2018 as against 1,037,094 MT in 2017. Top ferrous scrap exporters were USA, UK, Japan and Russia.

The country imported total 62,700 MT bulk ferrous scrap in Dec’18, down 51% M-o-M as against 128,552 MT bulk ferrous scrap in Nov’18. With rising steel capacities and increased dependence on secondary steel production, the country has been also observing increasing scrap imports in FY19.