In recent conversations with market participants SteelMint learned that, imported scrap market remained weak in Bangladesh. Few limited quantity deals have concluded in containers as offers have edged down further this week. Ongoing monsoon season has weakened finish steel demand in the country thus very limited quantity deals are being reported in rebar and billet markets this situation has turned less supportive to scrap imports in large quantities.
In recent trade deals, Shredded 211 scrap from UK sold in containers in the range of USD 368-375/MT, CFR Chittagong. Offers for Shredded also heard in the range of USD 367-373/MT, CFR Chittagong for other origins like Brazil and Australia.
In line with this, HMS 1 scrap assessment has come down by USD 5-7/MT W-o-W in Bangladesh. HMS 1 from Brazil and Chile assessed at around USD 363-365/MT and USD 355-360/MT, CFR respectively. While UK and Europe HMS 1&2 (80:20) assessment stood at around USD 340-345/MT, CFR as against USD 350-355/MT report at which few deals were sold last week.
“Overall market looks weak in terms of prices, limited trades are happening in the market as buyers are waiting amid seasonal slowdown moreover, heavy monsoon in the country has impacted lot of activities and finish steel demand” shared a steelmaker.
Domestic scrap prices in Bangladesh move down further – Local scrap prices in Bangladesh continued downward corrections since last couple of weeks’ over a weak fundamentals. Prices assessed at around BDT 34,500-35,500/MT (USD 409-421), ex-works. Domestic ship cutting plate scrap prices also have moved down by BDT 500-700/MT and assessed in the range of BDT 41,000-43,000/MT depending on sizes.
Ship breaking prices move down further by USD 5-10/LDT in Bangladesh – As a result of India being disturbed by successive price fall in local steel plate and semis prices on the other hand Pakistan being awaiting for tanker cutting permissions in actual, Bangladesh based buyers lowered their offers further this week. Looking at price differentials for all sub-continental markets, it seems that majority of unsold units may continue to head to Chittagong market. Prices assessed at USD 405-410/LDT for general dry bulk cargo, at USD 425-430/LDT for tanker cargo and at USD 335-440/LDT for containers on CNF Bangladesh basis. Last week, two tanker deals concluded at USD 360/LT LDT levels of 5,112 LDT and 6,096 LDT volumes each.
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