Bangladesh scrap importers turned active this week despite a sharp increase in prices. Significant quantities of scrap have booked in containers over the falling inventories and rising local scrap and steel prices.
As per recent conversations with market participants SteelMint learned that, imported scrap offers to Bangladesh climbed sharply by USD 25-30/MT during last two weeks’ time. Importers are actively buying containerized scrap despite high offers this week.
In recent deals, Shredded scrap from UK and USA in containers traded at USD 410/MT, CFR Chittagong. While according to sources, another deal concluded for premium Shredded scrap sold in the range of USD 415-418/MT, CFR Chittagong from UK based leading supplier.
These trades pushed price assessment up by USD 10-15/MT further on W-o-W basis. Few offers for P&S scrap heard in the range of USD 412-415/MT, CFR from Brazil, Australia and New Zealand.
HMS 1&2 (80:20) in containers assessed at around USD 400/MT, CFR from Dubai, Brazil and South Africa while HMS 1 being offered at USD 400-405/MT, CFR Chittagong levels from Dubai.
“Bangladesh scrap importers are actively booking imported scrap and even willing to buy more at current levels amid strong demand. Prices have gone up over the strengthening of global scrap prices and increased freight charges. Bulk scrap offers are higher by around USD 5-10/MT over the containerized offers. Also, local ship breaking scrap and finished steel prices have moved up recently.” Shared a source.
The local ship breaking scrap prices in Bangladesh are reported at around BDT 33,000-34,000/MT (USD 396-408), ex-works and excluding local taxes.
Ship breaking prices remained firm on W-o-W basis in Bangladesh. Prices assessed at USD 430/LDT for general dry bulk cargo, at USD 440/LDT for tanker cargo and at USD 450/LDT for containers respectively on CNF Bangladesh basis. In a sale reported, VLCC of 42,099 LDT sold at USD 440/LDT, CNF Bangladesh.
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