Bangladesh’s imported scrap market mostly remained quiet this week, as domestic finished steel prices are very low currently hence not supporting the consistently increasing global offers. Global Suppliers are offering more to other South Asian countries such as Pakistan due to Pakistani buyers actively booking Eid festival holidays next week.
Very limited trades to Bangladesh were reported in containers this week.
SteelMint’s assessment for containerized shredded 211 scrap from UK/ Europe origins stands in the range of $300/t CFR Chittagong, remained stable against last week’s report, however, only few offers for European shredded were reported in Bangladesh market.
Australian origin shredded, meanwhile, is being offered at around $295/t CFR Chittagong and some deals were concluded for Australian origin cargo.
Many scrap suppliers are away from Bangladesh market due to low buying interest on subdued local market amid rising global offers.
Fresh offers for shredded in bulk from USA west coast now stand at $ 285/t CFR Chittagong basis, however, no bulk deals have got concluded at this level.
HMS scrap too observed limited trades this week. Only Brazil origin HMS 1 deals were concluded at around $275/t CFR, while offers are above $280/t for Brazilian HMS 1. HMS 1&2 (80:20) from Brazil are being offered at around $270/t CFR Chittagong basis, while, HMS 1&2 (90:10) prices from Australia being quoted at $285/t CFR Chittagong. “Australian HMS are very costly now due to tight availability” an Australian source shared with SteelMint.
Some steelmakers shared their price ideas for HMS 1&2 (90:10)& HMS 1&2 (80:20) at very low level at around $250-255/t CFR basis. A Dhaka based steel manufacturer shared that “above the average price of $250 for HMS 1&2 (80:20) is not feasible currently for Bangladesh market”.
Domestic Market:
Domestic steel market have slowed down this week due to heavy rain and flood, impacting the government’s major projects and other construction activities. on the other hand, the upcoming next week’s Eid-festival are also slow down production activities in steel mill due to most of the workers are on holidays.
Domestic billet prices now stand at BDT 40,000/t exw Dhaka inclusive of all taxes.
A major Chittagong based mill dumbed 10,000 t of billet at BDT 39,000/ t, inclusive of taxes lowest price recorded since mid-2015.
Rebar prices moved down by BDT 1000/t and quoted at BDT 48,000-49,000/t exw Dhaka for mid-size mills in Dhaka.
Local shipyard scrap prices have lightly inch up this week at BDT 26,500- 27,000/t ex yard Chittagong, inclusive of all taxes, after remaining stable for last few weeks, buyers are showing interest in shipyard scrap and trades were reported this week.
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