Bangladesh: Imported scrap prices rise $4/t w-o-w amid selective offers

• Pre-election political uncertainty continues to weigh on trade
• Temporary shutdowns by some Dhaka mills limit scrap demand

Bangladesh’s imported scrap prices increased by up to $4/t w-o-w in the week ended 31 December. A slight improvement in market activity was observed towards the year-end, with scrap suppliers making selective offers to the market. However, overall, conditions remained under pressure due to political uncertainty ahead of elections in the coming two months.

BigMint’s weekly assessments

• European-origin HMS (80:20) was at $343/t, inching up by $2/t w-o-w.
• European-origin containerised shredded increased by $4/t w-o-w to $365/t.
• Japanese-origin H2 bulk was up by $2/t w-o-w to $342/t.
• US-origin HMS (80:20) bulk increased by $1/t w-o-w to $361/t.

As per a Dhaka-based scrap buyer, Australian-origin indicatives were at around $365-370/t CFR Chattogram for PNS/busheling, while HMS 90:10 and shredded were in the $350-360/t range. For Bangladesh overall, HMS 80:20 was indicated at $325-330/t and HMS 1 at $335-340/t CFR.

As per a Chattogram-based bulk scrap trader, US-origin bulk offers were on the higher side, with last heard levels around $368-370/t CFR and no active bids at those prices. Japanese H2 was offered at $342-345/t, while workable levels were closer to $335-338/t. Temporary shutdowns by some Dhaka-based mills kept scrap demand selective.

Domestic market

As per a Chattogram-based mill-side source, Dhaka market levels were around BDT 75,000/t ($614/t) for rebar, BDT 63,000/t ($515/t) for billet, and BDT 47,000-48,000/t ($385-393/t) for scrap. In Chattogram, rebar prices were around BDT 3,000/t ($25/t) higher than in Dhaka. A slight improvement was noted toward year-end, while billet and scrap prices remained broadly stable at current levels.

Chattogram sentiment weakens on softer prices, cautious buying

Bangladesh’s ship recycling market softened w-o-w as buyers turned cautious after absorbing heavy volumes earlier, pressuring resale options and prices. Despite firm anchorage activity, a stronger taka and flat steel prices, political uncertainty weighed on confidence.

Market participants noted limited deal interest and a lack of aggressive buyers. Bulker prices were indicated at $380-390/t, while tankers were assessed at $400-415/t. Overall demand remains subdued, keeping activity muted and price discovery weak.

Outlook

Bangladesh’s scrap prices are expected to remain at current levels in early January. Mild support from year-end rebar sales and limited scrap availability may prevent a sharp downside, but political uncertainty, selective mill operations, and cautious buying are likely to cap any meaningful upside over the coming weeks.