Bangladesh: Imported Scrap Prices Stable in Recent Deals

In recent conversations with market participants SteelMint learned that, scrap importers have resumed bookings in Bangladesh and few deals have reported in the market at almost stable prices. However, local steel markets remained unchanged since past few weeks. Many of the participants remained waiting for improvement in the finish steel demand in the country.

In recent trade deals, Shredded 211 scrap from USA and UK sold in the range of USD 392-395/MT, CFR Chittagong. Moreover, buying interest has improved from buyers at these levels against last week. SteelMint’s price assessment has remained almost flat on W-o-W basis.

P&S scrap sold at USD 392-395/MT, CFR from Brazil while offers from Australia, Canada and USA origin HMS 1 assessed in the range of USD 380-383/MT, CFR Chittagong. HMS 1 from UAE sold at USD 384-385/MT, CFR and HMS 1&2 (80:20) from West Africa,UK and Brazil sold in small quantities at around USD 360-365/MT, CFR.

“Although few trades reported in the market at stable prices, ongoing monsoon and the downward trend in domestic market remained matter of concern” shared a source.

Local scrap prices in Bangladesh reported stable at around BDT 36,000-36,500/MT (USD 426-432), ex-works. Domestic ship cutting plate scrap prices in the range of BDT 42,000-42,500/MT (USD 497-503) including 15% local taxes.

Markets for local rebar and billets are almost flat with limited activities observed again this week. Local steel prices have declined by similar margins in the market.

Ship breaking prices stable on W-o-W – Since past few weeks, Bangladesh has remained the preferable ship breaking market for large VLCC sellers in the global markets. Recyclers are hopeful for securing a negotiated price levels for mid-sized vessels in order to maintain their bank balances. Ship cutting market witnessed steady sentiments with few sales likely to happen at almost stable prices on W-o-W basis. Prices assessed at USD 425/LDT for general dry bulk cargo, at USD 435/LDT for tanker cargo and at USD 450/LDT for containers on CNF Bangladesh basis.