Buying inquires for imported scrap have gained momentum in Bangladesh this week and pre-stocking activities are expected to increase further in coming days. Importers have turned active over the anticipation for pick up in the finish steel demand in the domestic market on approaching completion of the Ramadan festive season. However, starting of rains since the last couple of weeks remained a matter of concern for few participants.
As per recent conversations with market participants SteelMint learned that, few trades for containerized imported scrap have recently concluded in the market as the prices have moved down as compared to the offers which were being quoted last week. Most of the participants now hopeful for the jump in the finish steel demand as the activities in the steel market likely to resume at an earlier pace within next two weeks.
In recent trade deals, 2000-4000 MT UK origin containerized Shredded 211 scrap sold at USD 396-397/MT, CFR and Offers for Shredded are mostly in the range of USD 395-398/MT, CFR levels. While HMS 1&2 is being offered at around USD 373-378/MT, CFR from Brazil. These deals have pulled the price assessment for down by around USD 5-10/MT on W-o-W basis.
Price assessment for West Africa, Chile and European containerized scrap remained in the range of USD 360-370/MT, CFR Chittagong depending on the quality of scrap. P&S assessed at around USD 390-393/MT, CFR from Brazil and Australia.
Few break bulk offers for HMS 1&2 scrap heard from suppliers at around USD 380/MT, CFR Chittagong. Market participants expect steel mills to resume booking ‘break bulk’ cargoes in the coming time amid less inventories and strong demand post-Ramadan festive season.
Offers for HBI are heard around USD 380-390/MT, CNF Chittagong from Malaysia and Venezuela respectively.
Domestic scrap prices in Bangladesh fall BDT 1000/MT – Local scrap prices are reported at around BDT 36,500-37,000/MT (USD 433-438), ex-works including 15% local taxes. These prices have moved down amid decline in demand by BDT 800-1000/MT (USD 9-12) as against last report of BDT 37,500-38,000/MT (USD 444-450) last week.
Domestic ship cutting plate scrap (considered to be equivalent to P&S) prices have started falling down recently in Bangladesh. Prices assessed in the range of BDT 42,000-43,000/MT (USD 499-507) (Size 16 mm and 20mm) While ship cutting plates larger than 20mm size assessed at BDT 43,000-43,500/MT (USD 509-515).
Ship breaking plate prices witnessed unexpected gains last week in Bangladesh however market could not attract the attention of the ship owners and cash buyers and remain less competitive as compared with other Asian markets. Prices assessed at USD 410/LD for general dry bulk cargo, at USD 420/LDT for tanker cargo and at USD 430/LDT for containers respectively on CNF Bangladesh basis.
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