Bangladesh: Imported scrap prices slide further, buyers cautious

• Despite low offers, bulk/container market remains muted
• Mills are expected to resume bulk bookings for Mar’21 shipments shortly
• Domestic rebar prices largely stable

Bangladesh bulk scrap prices were slightly down further this week, however, no bulk deal was reported till the time of publishing this report. Japanese scrap offers have dropped further by $20 w-o-w. SteelMint’s assessment for Japanese H2 now stands at $400-410/t CFR Chittagong level.

Current price indications for USA origin HMS bulk cargoes are now at around $415-420/t CFR Chittagong, for Mar’21 shipment to Bangladesh. Notably, the offers are cited after a gap of almost two weeks as most of the major players have already booked for Feb’21 shipment.

Additionally, disparity between bid and offer kept buyers away from the market, sources have shared to SteelMint.

Containerised imported scrap trades remain sluggish– Containerised imported scrap trades to Bangladesh remain sluggish despite low offers, as all are in a wait and watch mode and are waiting for prices to come down below $400 levels.

“Market is still under confusion, but getting better and it would be resettled this week”,  highlighted by a prominent trader.

• Around 2,500 t of shredded has been booked at $410-415/t CFR Chittagong basis earlier this week, a reliable source has reported
• Another deal concluded for Australian origin HMS 1&2 (80:20) at $405/t CFR Chittagong, towards the beginning of the week
• Fresh offers for shredded from different origins is being quoted at $415-425/t CFR Chittagong basis, down by $35 as compared to mid of the last week
• HMS 1&2 (80:20) is being quoted at $400-410/t CFR Chittagong levels, decreasing significantly by around $30-40 w-o-w

Domestic rebar prices mostly stable– Major mills’ kept domestic rebar prices unchanged to BDT 65,000/t exw, this week. Whereas, secondary mills’ offers are currently quoting in the range of BDT 57,000-58,000/t exw for rebar, up by BDT 2,000/t w-o-w. Local shipyard scrap prices are mostly stable at BDT 38,000/t exy level.

Market leaders unveil Q4 CY’20 result-

• The steel manufacturing giant- BSRM recorded its profit for the quarter and stood at BDT 108.9 cr, compared to BDT 13.9 cr during the same period a year ago
• GPH Ispat’s profit was up 2.6% y-o-y to BDT 42.2 cr for Oct-Dec’20 quarter

Outlook– Market expects- Bangladesh based mills to start restocking bulk scrap cargoes for Mar’21 shipments in the coming days.