As the global scrap prices are continuously dropping since mid Mar’20 due on low demand amid production cuts due to COVID-19 escalation, Bangladesh has booked another bulk cargo at sharply reduced price earlier today, marking the 16th bulk vessel booking for Bangladesh in last one month.
In the latest booking concluded just today, a major EAF Steelmaker from Chittagong booked a Bulk cargo from a USA West Coast based supplier, at USD 250/MT CFR Chittagong for 32,000 MT of cargo entirely comprising of Shredded scrap. The shipment for the cargo is expected for May ’20.
This booking comes at a price lower by USD 25/MT against last booking, which was concluded at USD 275/MT CFR for Shredded over a week ago. Although in comparison to the bookings in opening of March at around USD 295/MT for Shredded, the price has come down by USD 45/MT CFR over this month, as global prices now hover around lowest in 3-&-a-half to 4 years low.
Notably, this is the fifth bulk vessel booking by the said steelmaker in March’20 from the USA, while in total, Bangladesh steelmakers have now booked eight bulk vessels from USA, two bulk vessels from Australia and six smaller vessels from Japan, comprising of 360,000 MT of bulk scrap in March alone, easily the highest ever bulk scrap’s booking in one month period by Bangladeshi steelmakers as yet.
Amid reports about strict inspection of arriving vessels at Chittagong port as well as reduced workforce at suppliers’ end due to the lockdown, it is to be seen if the April arrival cargoes will berth on time without any delays.
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