Bangladesh: Limited offers push imported scrap offers up further

In a deal concluded recently, an Australian origin 24,000 t of bulk cargo has been booked by the major steel mill based in Bangladesh towards the end of last week. The deal price was heard around $335-340/t CFR basis, however, it could not be confirmed till the time of publishing this report.

Furthermore, there is a buzz in the market that another bulk deal has concluded for US origin cargo, comprising of HMS 1&2 (80:20) at around $345/t and shredded at $350/t CFR basis, however, traders/buyers denied its confirmation citing limited bulk cargo availability from US & Australia.

• Bulk offers for Japanese H2 are reported at $345/t CFR Chittagong.
• SteelMint’s assessment for bulk Japanese H2 stands around $340/t, up sharply by $10-12 w-o-w.
• Price indications for US origin bulk shredded are being quoted in the range of $350-355/t CFR Chittagong level.

Containerised scrap deals and offers –

Imported scrap prices to Bangladesh too have surged significantly by over $40 in last two months. SteelMint’s assessment of containerized shredded 211 scrap from UK/Europe origins stands stable at $365/t CFR Chittagong, up $25 w-o-w.

• A Philippines origin shredded and PNS have been booked at $355/t Chittagong level for 1000 t each
• Indicative offers for HMS are heard around $350-355/t CFR levels
• Offers for UK/EU origin containerised shredded stand at $365/t CFR levels

Market leaders unveil Q3 CY20 result-

• The steel manufacturing giant- BSRM recorded its profit for the quarter and stood at BDT 33.6 crore, up 39.4% y-o-y
• GPH Ispat’s profit was up 67.7 % y-o-y to BDT 27.5 crore between Jul- Sept’20

Bangladesh major mills to lift rebar offers shortly- 

Bangladesh-based major mills like BSRM etc are likely to raise offers shortly backed by higher input cost. However, medium-sized mills are considering the hike of just BDT 1500 and stand at BDT 53,000/t level. Shipyard scrap prices have risen as well on the shortage of domestic scrap availability and currently stand at BDT 35,300/t ex yard Chittagong basis, up by BDT 1,300 w-o-w.