Bangladesh: Imported scrap trade in containers continues, steel prices stable

Bangladesh’s scrap market is more-or-less stable with slight corrections of $5/t seen in imported scrap prices this week. However, mills continued to prefer bookings in containers, although inquiries for bulk cargo is also learnt to be picking up.

Container shortage and increasing freight rates, however, have become a matter of concern for containerised bookings, highlighted a local player.

Recent offers

• Fresh offers for UK/EU-origin shredded are being offered at $530-540/t CFR levels, mostly stable against last week’s offers.
• A major market player has booked around 8,000 t of HMS 1&2 (80:20) from the UK at around $498-500/t CFR Chittagong basis.
• Fresh offers for different origins HMS 1&2 (80:20), on the other and, are being quoted at $500-505/t CFR levels.

“Less availability of offers and container shipment performance is alarming, whereas, even best suppliers are delaying shipment on ground of scarcity of containers,” said a scrap trader.

Bulk scrap bookings likely to resume: Bangladesh-based bulk scrap buyers would likely resume restocking soon and suppliers expect them to return to the bulk market any time. The increased finished steel demand may increase bulk scrap inquiries.

• US-origin bulk cargo offers to Bangladesh for shredded and HMS 1&2 (80:20) are quoted at $545/t CFR and $540/t CFR Chittagong levels.

Bulk ferrous scrap imports down 12% m-o-m in Aug’21: Bangladesh has recorded a drop of 12%, m-o-m, in its bulk ferrous scrap imports in Aug’21. The country imported 0.19 mn t of scrap in Aug as against 0.22 mn t in Jul, according to data maintained with SteelMint.

The US continued to be the largest scrap exporter at 0.07 mn t in Aug followed by the UK and Australia at 0.04 mn t and 0.03 mn t, respectively. The total volume of imports into Bangladesh fell owing to weak demand amid lockdown restrictions.

Domestic rebar prices range-bound: Bangladesh’s domestic steel market remained muted for yet another week, SteelMint understands. Market players believe that rebar sales are not up to the market trend, as Sept-Oct are more active months for steel consumption.

• Major mills kept their rebar offers unchanged at BDT 72,000-73,000/t exy-Chittagong.
• Dhaka-based mills too kept rebar prices firm at BDT 68,000-70,000/t exy.