Imported scrap offers have moved up significantly in terms of both container and bulk route scrap. Trades in containers have picked up in Bangladesh as the market there has resumed this week post- Eid holidays. However, higher bulk scrap offers have kept buyers on the sidelines.
Bulk ferrous scrap offers shoot up by up to $50/t w-o-w
Bulk ferrous scrap offers for Bangladesh have moved up by $35/t, w-o-w, sources informed SteelMint. Currently, bulk HMS 1&2 (80:20) offers are being quoted at $555-565/t, CFR Chittagong levels. Price indications for shredded scrap have shot up to $560-570/t, CFR Chittagong.
However, buyers happen to be adopting a wait-and-watch approach and bookings are likely to resume for restocking only after a week.
Japanese bulk H2 grade scrap offers too have soared by over $50 to $555-560/t CFR Chittagong. However, no fresh trades have been reported at these levels. Notably, the Japanese scrap suppliers were engaged in trading with other bulk scrap buyers like South Korea and Vietnam.
Container imported scrap market remains active in Bangladesh
Despite high offers, the containerised scrap market remained active in booking fresh slots for the monsoon season. Imported scrap offers have risen by $30/t in just one week.
- Around 4,000 t of shredded from UK/EU have been sold at $540-545/t CFR Chittagong levels in fresh trades heard.
- SteelMint’s assessment for HMS (80:20) stands at$520/t CFR, up by $22/t w-o-w.
- Few trades were heard to be concluded for 2,000 t of PNS at $548/t CFR Chittagong .
Domestic rebar prices increase by up to BDT 2,000/t ($24/t)
Bangladesh’s domestic market is slow post-Eid holidays and remains closed in most of the regions. Demand is dull at the moment as raw material prices are high.
Mills raise rebar offers on higher production costs
All the steel mills have increased rebar offers by BDT 1,500-2,000/t in the past two to three days. Major mills have increased rebar offers at BDT 72,000-74,000/t exw-Chittagong levels, up around BDT 2,000/t w-o-w. Following the trend, Dhaka mills are quoting rebar prices further up at BDT 68,000-68,500/t exw.
Local scrap prices have moved up after Eid. SteelMint’s assessment for shipyard scrap for the Chittagong region now stands at BDT 49,000/t exy-levels, up by BDT 1,500/t w-o-w.
Outlook
Imported bulk scrap buyers are likely to resume activity by next week on increased restocking. However, finished steel demand is expected to remain on the lower side from July’21 owing to the approaching monsoon.
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