Imported scrap trades via containers have gained momentum as availability of bulk offers has been limited. On the other side, Japanese scrap suppliers kept away from quoting bulk offers due to concerns of rising freight rates and availability. The disparity between bids and offers of US bulk cargoes has prevented Bangladesh steel mills from placing new bookings.
“If Bangladesh mills need to restock with bulk cargoes, they will have no option but to pay higher numbers. Bangladesh buyers are bidding lower but unable to secure any tonnages at their current price bids of $445 for HMS & $450/t CFR for shredded. Bulk offers are around $465 HMS and $470 shredded” shared a US bulk scrap trader.
“There are indications that shipping lines are going to increase freight rates further. Most suppliers are holding back offers from UK and Europe. A few buyers have raised their inquiries and were also bidding at $450/t for shredded, but are not getting firm offers at the moment” shared an official from EU based scrap recycling firm.
Containerised trades have improved significantly on the back of supported finished steel market sentiments and buyers restocking their inventory ahead of Ramadan, SteelMint understands.
Recent trades and offer
- 5,000 t of shredded have been sold from different origins like UK, Europe, Canada & Australia at an average price of $454/t CFR levels
- In a confirmed trade, around 2000 t of UK/EU origin shredded have been booked recently at $445-450/t CFR levels
- Fresh offers for UK/EU origin shredded is being quoted at $455-460/t CFR Chittagong levels, down by $10 w-o-w
- HMS 1&2 (80:20) from UK/Europe are being quoted at $440/t CFR Chittagong, witnessing a sharp fall of $15-20 as compared to last week’s report
Inquiries for Indian sponge iron increases: Eastern India-based suppliers have reported an active procurement for sponge iron from major mills based in Bangladesh. SteelMint’s weekly benchmark sponge iron export price assessment remained unchanged in fresh deals of around 12,000 t through the Eastern India based exporters. Recent trades have been reported at around $390/t CPT Benapole, equivalent to $410/t CFR Chittagong, Bangladesh.
Domestic rebar prices remain stable: Domestic rebar offers continued to be stable for yet another week due to a drop in imported scrap prices. Rebar offers from major mills are largely stable and currently at BDT 68,000-69,000/t exw Chittagong levels. Whereas, Dhaka-based mills are quoting prices in the range of BDT 64,500-66,000/t exw, unchanged w-o-w.
However, local shipyard scrap prices were up marginally and are being cited at around BDT 44,500/t exy level.
Outlook: Market participants believe that the imported scrap trades will remain active this week, however logistics and vessel availability remains a matter of grave concern.
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