Bangladesh: Imported scrap trades in containers remain active on limited bulk offers

Imported scrap trades in containers have remained active in Bangladesh due to the absence of firm bulk offers. Ahead of Japan’s monthly Kanto scrap export tender, which is scheduled for tomorrow, Japanese suppliers are waiting for more clear directions to quote fresh offers, hence limited offers were reported for Japanese H2 bulk to Bangladesh. However, recent indications for bulk H2 is being reported at around $390/t CFR level. SteelMint’s assessment for bulk Japanese H2 stands at $ 388/t CFR Chittagong level, up by $15 w-o-w.

US origin HMS bulk cargo offers too, have been increased and are now being heard at $405-410/t CFR level, moving up by $5-10 on a weekly basis. Few sources mentioned that Bangladeshi steel mill has booked USA origin mixed cargo at $395/t CFR level a week ago, however it could not be confirmed till the time of publishing.

Recent containerised deals and offers-

• In a recent deal, a Bangladesh based trader has sold UK origin PNS and HMS (80:20) at $415 and $405/t CFR level respectively, containing 1,500 t quantity each.
• Another deal concluded for 1,000 t of Malaysian shredded was at $420/t CFR Chittagong level.
• Furthermore, a decent quantity of Philippine origin PNS has been sold at $428/t CFR Chittagong level.
• Shredded from different origins are being offered at around $425/t CFR Chittagong, moving up considerably by $20-25 w-o-w.
• Whereas, HMS 1&2 (80:20), suppliers are quoting around $400-405/t basis, up by $10-15 on a weekly basis.
• Australian HMS has been traded at $400/t CFR Chittagong
• UK/EU origin PNS offers are at $ 435/t level, up by $20-25/t w-o-w basis.

Container shortage continues to remain a concern due to COVID’19, and it won’t be solved till next Apr’21, sources highlighted.

Inquiries for Indian sponge iron climb– Sponge iron export demand remained strong with frequent deals reported from eastern India based participants. 10,000 t of sponge iron has been booked recently to Bangladesh for Jan’21 shipment at $370-375/t CPT Benapole via road deliveries, sources have reported to SteelMint.

Domestic steel prices remain firm– Rebar offers of major steel mills in Bangladesh stands at BDT 62,000/t exw Chittagong levels, while steel mills are selling it below BDT 60,000/t level. Whereas, local shipyard melting price stands in the range of BDT 39,500- 40,300/t exy Chittagong basis.