Bangladesh: Imported scrap prices up on active buying inquiries

Bangladesh-based mills have continued to remain active in imported scrap bookings ahead of the peak season. Active deals in containers were reported. However, no confirmed bulk cargo bookings were heard, although negotiations are on, SteelMint understands.

Recent containerised offers and deals

• Around 1,000 tonnes (t) of UK-origin shredded have been booked recently at $560/t CFR Chittagong basis.
• Fresh offers for the UK/EU-origin shredded are being quoted at $550-560/t CFR levels, slightly up by $10/t w-o-w.
• Around 1,000 t of HMS 1&2 (90:10) have been sold recently at $520-525/t CFR Chittagong.
• Offers from the UK were reported at $510-515/t CFR levels.
• Around 1,500 t of PNS have booked at $540/t CFR Chittagong from Middle-East.

Bulk scrap offers up, bookings to happen soon

With arecent deal concluded by Turkish scrap buyers for US bulk scrap cargo at an increased price, global imported scrap prices are moving northward. Bangladesh, South Asia’s bulk scrap buyer, however, extended its silence on bulk cargo bookings for yet another week.

“Bangladesh buyers need to book material soon for November shipment and they will have no choice but to pay higher levels at the moment because Vietnam is actively buying bulk cargoes,” said a bulk scrap trader.

• Offers for US-origin HMS bulk scrap stand at $540/t CFR Chittagong, an increase of $15/t w-o-w.
• Bulk Japanese H2 scrap offers are at $570/t CFR Chittagong, an increase of $10-15/t CFR Chittagong.

“Bangladesh-based bulk scrap buyers surely consider UK/US-origin bulk cargoes, but are not much interested in Japanese bulk cargoes due to increased freight rates and high offers,” said a Japanese bulk scrap trader.

Rebar offers by major mills remain stable

Market sources expect construction demand to pick up in the coming weeks with the onset of the festive season and continued economic growth after the pandemic-induced disruption.

Major steel mills in Bangladesh are offering rebar (10-16 mm) at BDT 71,000-73,000/t ($827-850/t) exy-Chittagong, SteelMint learnt from sources. Offers by Dhaka-based plants are stable at BDT 66,000-68,000/t ($769-792/t) on exy basis.

SteelMint’s assessment for shipyard local scrap stands at BDT 49,000/t exy levels.

Outlook
Market insiders are waiting for Japan’s monthly Kanto Tetsugen scrap export tender, which has been scheduled for 12 Oct’21, to have a better understanding of Japanese scrap price trends. However, bulk bookings from other origins are likely to happen soon.