Bangladesh: Mills book three bulk cargoes, container market yet to pick up

• Mills book three bulk scrap cargoes from USA, UK
• Mills adjust rebar offers on BDT depreciation

Bulk scrap trading activity in Bangladesh resumed after a pause of almost over two weeks. Two of the major mills have reportedly booked cargoes over the last couple of days.

• Around 32,000 t of US-origin mixed bulk cargo was booked towards last weekend. The cargo comprised HMS 1&2 (80:20) at $513-515/t and shredded material at around $518-520/t CFR Chittagong basis.
• Another cargo from US for about 30,000t carrying a mix of shredded and HMS was heard concluded at a similar price levels.
• Another 32,000 t of bulk cargo was booked from UK comprising HMS 1&2 (80:20) at $495-500/t and shredded at $515-520/t CFR Chittagong basis.

Container imported scrap trade remains slow

The country’s other secondary mills and containerized scrap buyers are yet to receive any positive signs from the downstream sector. However, imported scrap offers have inched up slightly with very few deals heard to have concluded.

• Price indications for containerised shredded are now at $545-550/t CFR, up by $10 w-o-w.
• Around 2,000 t UK HMS 1&2 (80:20) was booked at $530/t CFR levels, up by $10/t w-o-w.

Mills adjust rebar offers amidst currency depreciation: The domestic market witnessed mixed trends due to currency volatility and construction material got costlier. Hence the end-users opted to wait and watch. As per SteelMint assessment, the major mills’ rebar (10-16mm) price assessment stood at BDT 85,000-87,000/t($954-977/t) exw Chittagong, including taxes, slightly up by BDT 1,000/t ($11/t). The country’s national currency devalued further against the US dollar. Currently, the Taka is being traded at 88.75 against the dollar, which was seen at 87.85 levels a week back.

Outlook: With the recent Turkish deal concluded at lower offers, market participants believe this must be a temporary hike for containers. However, suppliers continue to hold offers and do not expect a major correction in the near term.