Bangladesh: Imported scrap prices up $3/t w-o-w amid supply crunch

• Scrap prices rise due to near-shore sourcing
• Lack of new govt projects dampens steel demand

Bangladesh’s imported containerised scrap prices saw a slight uptick this week as the global scrap market strengthened amid a supply crunch. Due to the unfeasibility in purchasing scrap from distant origins like the UK and US, Bangladesh is sourcing higher-priced near-shore material, which is contributing to the rise in prices.

As per market insiders, there is a preference for scrap from Japan, Malaysia, and Singapore, as these origins are more sought-after in the current market.

A Dhaka-based mill source commented: “Construction activities have been halted since August, and while rebar sales were strong in January, with nearly 100% sales, lack of ongoing construction work has slowed demand again. Additionally, no new government projects have been announced, further dampening market activity.”

A market participant based in Chattogram said, “Demand in Bangladesh is slowing, with mills handling lower volumes, while scrap imports are coming in from Dubai, Hong Kong, and Singapore.”

Currently, offers on a CFR Chattogram basis include Australian shredded at $370-375/t CFR Chattogram, US shredded at $365-370/t CFR, and Hong Kong PNS at $378-380/t CFR. Meanwhile, shipyard scrap is at around BDT 56,000-58,000/t ($467-475).

BigMint’s weekly assessments

• European-origin containerised shredded was up by $3/t w-o-w at $388/t
• European-origin HMS (80:20) rose $2/t w-o-w to $368/t
• US-sourced HMS (80:20) bulk prices were stable w-o-w to $360/t
• Japanese-origin H2 bulk prices stood at $350/t CFR Chattogram, stable w-o-w

Recent deals:

• 1,000 t PNS of Hong Kong origin was sold at $392/t CFR Chattogram.
• 700 t HMS (80:20) from Dubai was sold at $375/t CFR Chattogram.
• 700 t Blue Steel from Dubai was sold at $405/t CFR Chattogram.
• 2,000 t Japan-origin rebar bundles were sold at $376/t CFR Chattogram
• 2,000 t PNS from Hong Kong was sold at $383-385/t CFR Chattogram
• 1,000 t of shredded from Australia were sold at $372/t CFR Chattogram
• 1,000 t of shredded from the US got sold at $366/t CFR Chattogram

A Dhaka-based mill participant said, “Rebar prices in Chattogram are currently at BDT 85,000-87,000 ($696-712/t), while in Dhaka, they range from BDT 79,000-83,500 ($647-685/t). Local scrap prices stand at BDT 57,000-58,000/t ($468-476/t) for PNS and BDT 53,000-55,000/t ($435-451/t) for other types.

A steel mill official commented, “The slowdown in construction is keeping steel demand weak, impacting both local scrap and rebar sales. While local scrap remains short, mills are cautious on imported bookings, monitoring global price trends before making further deals.”

Outlook

The market is likely to remain sluggish, and while nearshore scrap sourcing will continue, demand is expected to remain soft due to a slowdown in construction activities and lack of new government projects. The supply crunch and preference for higher-priced materials from neighbouring countries may continue to affect price trends in the near term.