Bangladesh: Imported scrap trade quiet after aggressive bookings last week

Imported scrap trade in Bangladesh remained limited this week as mills had booked around 4-5 bulk cargoes from the US last week at average price levels of $535-540/tonne (t) CFR Chittagong.

Bangladeshi buyers are interested in booking US-origin cargo as Japanese cargo remains out of reach due to disparity in freight rates, said a reliable source. Fresh offers for US-origin bulk cargo are at $535-540/t levels, largely firm w-o-w.

Meanwhile, the Bangladesh market is likely to remain closed due to stricter lockdown this week as a precautionary step by the government, owing to a sharp increase in the numbers of Covid cases in the past few weeks.

“From 1 July, it is a complete lockdown in Bangladesh. But industries and factories will be allowed to run. Limited bookings in containers are heard despite high steel prices and continuous rain in Bangladesh. Steel mills are procuring for the monsoon season,” said a prominent scrap dealer based in Bangladesh.

Container scrap offers up marginally: Containerised scrap offers inched up by $2-3/t this week. Buyers continued to book scrap containers in small quantities, to restock for the monsoon season.

• Fresh offers for UK/EU-origin shredded are being quoted at $545-555/t CFR levels, up by around $3/t against last week.
• HMS from UK is being offered at $530-540/t CFR levels, up by $10/t against the last week.

SteelMint’s assessment for local shipyard scrap stands at BDT 49,750/t exy Chittagong, up by BDT 250/t w-o-w.

Imported sponge iron prices fall $10/t: Weak demand continued to pressure sponge iron suppliers to slash prices in order to carry on deals, given prevailing sluggish trends. A recent deal, of about 5,000 t of sponge iron (FeM 80%, 100% lump)was concluded at an average price of $440/t, CPT Benapole – equivalent to $465/t, CFR Chittagong, Bangladesh, witnessing a drop of $10/t against offers prevailing in the previous week.

Domestic rebar offers steady: Domestic rebar offers in Bangladesh remained unchanged so far but monsoons and lockdowns have slowed down sales quite a bit, sources said. However, major mills kept their offers unchanged against last week at BDT 70,000-72,000/t exw-Chittagong and those out of Dhaka-based mills were heard at around BDT 66,000-69,000/t exw.